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Right-of-use assets, long-term financial assets and lease liabilities

12 Months Ended

Dec. 31, 2022

Right-of-use assets, long-term financial assets and lease liabilities

Right-of-use assets, long-term financial assets and lease liabilities

5.Right-of-use assets, long-term financial assets and lease liabilities

The Company recognized additions and remeasurements of right-of-use of leased assets for buildings or for office equipment totaling CHF 0.5 million and CHF 1.2 million for the years ended December 31, 2022 and 2021, respectively. In 2022, these increases are predominantly associated with the remeasurement of our leased office space.

Regarding lease liabilities, the amortization depends on the rate implicit in the contract or the incremental borrowing rate for the respective lease component. The weighted averages of the incremental borrowing rates as of December 31, 2022 are 3.5% (2.5% for 2021) for buildings, 5.3% (5.3% for 2021) for office equipment and 2.6% (2.6% for 2021) for IT equipment.

The following tables show the movements in the net book values of right-of-use of leased assets for the years ended December 31, 2022 and 2021, respectively:


				Office		IT
In CHF thousands		Buildings		equipment		equipment		Total
Balance as of December 31, 2021		2,776		98		40		2,914
Additions and remeasurements		460		—		—		460
Depreciation		(528)		(24)		(14)		(566)
Balance as of December 31, 2022		2,708		74		26		2,808


				Office		IT
In CHF thousands		Buildings		equipment		equipment		Total
Balance as of December 31, 2020		2,106		63		54		2,223
Additions and remeasurements		1,144		71		—		1,215
Dispositions		—		(15)		—		(15)
Depreciation		(474)		(21)		(14)		(509)
Balance as of December 31, 2021		2,776		98		40		2,914

For the years ended December 31, 2022, and 2021, the impact on the Company’s consolidated statements of income/(loss) and consolidated statements of cash flows is detailed in the table below.


		For the Year Ended
		December 31,
In CHF thousands		2022		2021
Statements of income/(loss)
Depreciation of right-of-use assets		566		509
Interest expense on lease liabilities		68		63
Expense for short-term leases and leases of low value		750		723
Total		1,384		1,295

Statements of cash flows
Total cash outflow for leases		1,388		1,299

The following table presents the contractual undiscounted cash flows for lease liabilities as of December 31, 2022 and 2021:


		As of
		December 31,
In CHF thousands		2022		2021
Less than one year		638		638
1-3 years		1,230		1,260
3-5 years		1,187		1,203
Total		3,055		3,101

The Company also has two deposits in escrow accounts totaling CHF 0.4 million for the lease of the Company’s premises as of December 31, 2022 and 2021, respectively.