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LEASES

9 Months Ended

Sep. 30, 2022

NOTE 8 – LEASES

The Company leases space under operating leases for manufacturing and laboratory facilities in Cleveland, Ohio, as well as administrative offices in New York, New York. The Company also leases 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, the Company has elected the practical expedient to exclude these short-term leases from the Company’s right-of-use assets and lease liabilities.

On March 31, 2022, the Company announced that they were pursuing a strategic partner to take over development activities of ABO-102 and that the Company was discontinuing development of ABO-101. As a result of this shift in priorities, the Company determined the portion of the lease that was dedicated to the future facility for the ABO-101 and ABO-102 programs, had no future value and thus, the Company recorded an impairment charge of nil and $1.6 million for the three and nine months ended September 30, 2022, respectively.

The following table provides a summary of the components of lease costs and rent (in thousands):

SCHEDULE OF COMPONENTS OF LEASE COST

	2022		2021		2022		2021
	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021

Operating lease cost	$	467	$	434	$	1,400	$	1,302
Variable lease cost		154		105		366		344
Short-term lease cost		17		13		58		23
Total operating lease costs	$	638	$	552	$	1,824	$	1,669

Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of September 30, 2022 are as follows:

Maturity of lease liabilities:	(in thousands)

Remainder of 2022	$	446
2023		1,829
2024		1,872
2025		1,631
2026		871
Thereafter		3,662
Total undiscounted operating lease payments		10,311
Less: imputed interest		2,017
Present value of operating lease liabilities	$	8,294

The weighted-average remaining term of the Company’s operating leases was 79 months and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 7.2% as of September 30, 2022.