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LEASES
 3 Months Ended
Mar. 31, 2022
Leases  
LEASES

NOTE 8 – LEASES

 

We lease space under operating leases for manufacturing and laboratory facilities in Cleveland, Ohio, as well as administrative offices in New York, New York. We also lease office space in Madrid, Spain as well as certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and, therefore, we have elected the practical expedient to exclude these short-term leases from our right-of-use assets and lease liabilities.

 

On March 31, 2022, the Company announced that we were pursuing a strategic partner to take over development activities of ABO-102 and that we were discontinuing development of ABO-101. As a result of this shift in priorities, the Company determined the portion of the lease which was dedicated to the future facility for the ABO-101 and ABO-102 programs, had no future value and thus, we recorded an impairment charge of $1.6 million for the three months ended March 31, 2022.

 

Components of lease cost are as follows:

 

(in thousands)  2022   2021 
   For the three months ended March 31, 
(in thousands)  2022   2021 
Operating lease cost  $

472

   $434 
Variable lease cost  $96   $135 
Short-term lease cost  $21   $5 

 

Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of March 31, 2022 are as follows:

 

Maturity of lease liabilities:  (in thousands) 
2022, remainder  $1,364 
2023   1,834 
2024   1,879 
2025   1,896 
2026   871 
Thereafter   3,662 
Total undiscounted operating lease payments   11,506 
Less: imputed interest   2,411 
Present value of operating lease liabilities  $9,095 

 

The weighted-average remaining term of the Company’s operating leases was 84 months and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 7.3% as of March 31, 2022.