Leases

12 Months Ended

Dec. 31, 2024

8. LEASES

The Company leases its office space for its corporate headquarters which has a remaining lease term of 24 months. In September 2024, the Company entered into an agreement to sublease 8,468 square feet of the 20,185 square feet of leased office space. The sublease term is from October 8, 2024 to December 31, 2026. The sublease arrangement resulted in impairment of ROU asset and leasehold improvement of $0.3 million and $0.1 million, respectively for the year ended December 31, 2024 and is included in restructuring expense on the consolidated statement of operations and comprehensive loss. The Company determined the impairment using the discounted cash flow of expected receipts from sublease which is considered a level 2 fair value measurement. The level 3 inputs in the calculation were insignificant. The calculated fair value of the sublease was $0.5 million.

The Company’s recognized lease costs include:


	Year Ended December 31,
(in thousands)	2024		2023
Statements of Operations and Comprehensive Loss
Operating lease cost (1)	$	715	$	734

(1) Operating lease cost is recorded within general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss.


	December 31, 2024			December 31, 2023
Weighted-average remaining lease term (months)		24.0			36.0
Weighted-average discount rate		7.6	%		7.6	%

The Company’s variable lease costs and short-term lease costs were not material.

The Company is obligated under a non-cancelable lease agreement providing for office space that expires on December 31, 2026. Maturities of lease payments under the non-cancelable lease were as follows:


(in thousands)	December 31, 2024
2025		668
2026		756
Total lease payments		1,424
Less imputed interest		(111	)
Present value of lease liabilities	$	1,313