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LEASES

3 Months Ended

Mar. 31, 2024

NOTE 7 – LEASES

The Company leases space under operating leases for administrative, manufacturing and laboratory facilities in Cleveland, Ohio. The Company also leases office space in New York, New York, that the Company sublets. The Company also leases certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and the Company has elected the practical expedient to exclude these short-term leases from the Company’s right-of-use assets and lease liabilities.

The Company has entered into two sublease agreements with unrelated third parties to occupy the Company’s administrative offices in New York, New York. The Company expects to receive $1.0 million in future sublease income through September 2025 from the two subleases noted above.

The following table provides a summary of the Company’s operating lease liabilities (in thousands):

SUMMARY OF OPERATING LEASE LIABILITIES

	March 31, 2024		December 31, 2023

Current operating lease liability	$	1,044	$	998
Non-current operating lease liability		4,046		4,402
Total operating lease liability	$	5,090	$	5,400

Lease costs and rent are reflected in general and administrative expenses and research and development expenses in the consolidated statements of operations and comprehensive loss, as determined by the underlying activities. The following table provides a summary of the components of lease costs and rent (in thousands):

SCHEDULE OF COMPONENTS OF LEASE COST

	2024		2023
	For the three months ended March 31,
	2024		2023

Operating lease cost	$	334	$	415
Variable lease cost		74		39
Short-term lease cost		23		18
Total operating lease costs	$	431	$	472

Cash paid for amounts included in the measurement of operating lease liabilities was $0.3 million for the three months ended March 31, 2024 and 2023.

Future minimum lease payments and obligations, which do not include short-term leases, related to the Company’s operating lease liabilities as of March 31, 2024 were as follows (in thousands):

Future minimum lease payments and obligations	Operating Leases

2024, remainder	$	591
2025		1,555
2026		791
2027		807
2028		823
Thereafter		1,693
Total undiscounted operating lease payments		6,260
Less: imputed interest		1,170
Present value of operating lease liabilities	$	5,090

The weighted-average remaining term of the Company’s operating leases was 63 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, 2024.

The Company received $0.1 million during the three months ended March 31, 2024 and 2023, of sublease income which is recorded in other income on the condensed consolidated statement of operations and comprehensive loss. Future cash receipts from the Company’s sublease agreements as of March 31, 2024 are as follows (in thousands):

	Operating
Future cash receipts	Subleases

2024, remainder	$	477
2025		485
Total future cash receipts	$	962