Leases

3 Months Ended

Mar. 31, 2021

65 Grove Street Lease

In July 2019, the Company entered into a lease for 25,078 square feet of laboratory and office space located at 65 Grove Street, Watertown, Massachusetts, or the Headquarters Lease. As part of the Headquarters Lease, the Company incurred $0.8 million in non-reimbursable construction costs. The lease began in March 2020, consistent with when the Company took control of the office space, and the lease term is 8 years. The discount rate of 8.9% was determined based on the Company’s incremental borrowing rate adjusted for the lease term including any reasonably certain renewal periods. In connection with the Headquarters Lease, the Company secured a letter of credit from Silicon Valley Bank, or SVB, for $1.4 million, recognized as long-term restricted cash, as of March 31, 2021 and December 31, 2020, respectively, which automatically renews each year.

Moscow, Russia Lease

The Company has a month-to-month facility agreement for its Moscow, Russia office. Rent expense is recognized as incurred.

As of March 31, 2021 and December 31, 2020, the components of the operating leases were as follows (in thousands):


	March 31,	December 31,
		2021		2020
Assets:
Right-of-use asset, net		$	10,676	$	10,948

Liabilities:
Current operating lease liabilities		$	942	$	908
Non-current operating lease liabilities		9,403		9,647
Total operating lease liabilities		$	10,345	$	10,555

For the three months ended March 31, 2021 and 2020 the components of lease costs were as follows (in thousands):


	March 31,
		2021		2020
Operating lease cost		$	444	$	472
Variable lease cost		288		199
Short-term lease cost		3		2
Total lease cost		$	735	$	673

The maturity of the Company’s operating lease liabilities as of March 31, 2021 were as follows (in thousands):


	March 31,
	2021
2021 (remainder)	$	1,368
2022	1,866
2023	1,922
2024	1,980
2025	2,039
Thereafter	4,945
Total future minimum lease payments	14,120
Less imputed interest	3,775
Total operating lease liabilities	$	10,345

The supplemental disclosure for the statement of cash flows related to operating leases were as follows (in thousands):


	March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:	$	444	$	487

Other than the initial recording of the right-of-use asset and lease liability for the Headquarters Lease, which is non-cash, the changes in the Company’s right-of-use asset and lease liability for the three months ended March 31, 2021 and 2020 are reflected in the non-cash lease expense and accrued expenses and other liabilities, respectively, in the consolidated statements of cash flows.

The following summarizes additional information related to operating leases:


	March 31,
	2021		2020
Weighted-average remaining lease term	7.1 years		8.0 years
Weighted-average discount rate	8.9	%	8.9	%