Leases

3 Months Ended

Mar. 31, 2024

LEASES

The Company has lease agreements for its facilities in Boston, Massachusetts, which is the Company’s principal executive office and Vienna, Austria, which is the Company’s research and development center. There are no restrictions or financial covenants associated with any of the lease agreements. The Company has an operating lease for approximately 1,200 square meters of laboratory and office space in Vienna, Austria (“Vienna Lease”), which commenced in February 2021 for a term of 7 years. The annual base rent for the Vienna Lease is approximately $282 thousand. The Company also leases approximately 28,000 square feet of office space in Boston, Massachusetts (“Boston Lease”), which serves as the Company’s headquarters. Base rental payments are approximately $1.1 million annually, plus certain operating expenses. The term of the Boston Lease will continue until November 2026, unless earlier terminated. The Company has the right to sublease the premises, subject to landlord consent and also has the right to renew the Boston Lease for an additional five years at the then prevailing effective market rental rate. The Company is required to maintain a security deposit in the form of a letter of credit for $0.6 million for the benefit of the landlord.

As the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments. The Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment.

The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows:


(dollars in thousands)	Three Months Ended March 31,
Lease Cost	2024			2023
Fixed operating lease cost	$	489		$	522

Total lease expense	$	489		$	522
Other information

Operating cash outflows from operating leases	$	344		$	346
Sublease income	$	—		$	49
Weighted-average remaining lease term—operating leases	3.0 years			3.8 years
Weighted-average discount rate—operating leases	11.5		%	11.3		%

Maturities of lease liabilities due under lease agreements that have commenced as of March 31, 2024 are as follows (in thousands):


Maturity of lease liabilities	Operating Leases
2024 (remainder of the year)	$	1,033
2025	1,404
2026	1,334
2027	282
2028	47

Total lease payments	4,100
Less: interest	(649)
Total operating lease liabilities as of March 31, 2024	$	3,451