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LEASES
 9 Months Ended
Sep. 30, 2024
Leases  
LEASES

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 $0.6 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):

 

   September 30, 2024   December 31, 2023 
         
Current operating lease liability  $1,057   $998 
Non-current operating lease liability   3,402    4,402 
Total operating lease liability  $4,459   $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):

 

   2024   2023   2024   2023 
   For the three months ended September 30,   For the nine months ended September 30, 
   2024   2023   2024   2023 
                 
Operating lease cost  $312   $340   $974   $1,048 
Variable lease cost   96    66    292    281 
Short-term lease cost   8    19    42    50 
Total operating lease costs  $416   $425   $1,308   $1,379 

 

Cash paid for amounts included in the measurement of operating lease liabilities was $0.3 million for the three months ended September 30, 2024 and 2023 and $0.9 million for the nine months ended September 30, 2024 and 2023, respectively.

 

 

Future minimum lease payments and obligations, which do not include short-term leases, related to the Company’s operating lease liabilities as of September 30, 2024 were as follows (in thousands):

 

Future minimum lease payments and obligations  Operating Leases 
     
2024, remainder  $450 
2025   853 
2026   791 
2027   807 
2028   823 
Thereafter   1,693 
Total undiscounted operating lease payments   5,417 
Less: imputed interest   958 
Present value of operating lease liabilities  $4,459 

 

The weighted-average remaining term of the Company’s operating leases was 61 months, and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 7.1% as of September 30, 2024.

 

The Company received sublease income, which is recorded in other income on the condensed consolidated statement of operations and comprehensive loss, of $0.1 million during the three months ended September 30, 2024 and 2023 and $0.4 million during the nine months ended September 30, 2024 and 2023. Future cash receipts from the Company’s sublease agreements as of September 30, 2024 are as follows (in thousands):

 

   Operating 
Future cash receipts  Subleases 
     
2024, remainder  $160 
2025   485 
Total future cash receipts  $645