Leases

9 Months Ended

Sep. 30, 2021

Cumberland’s significant operating leases include the lease of approximately 25,500 square feet of office space in Nashville, Tennessee for its corporate headquarters. This lease currently expires in October 2022. The Company's operating leases also include the lease of approximately 14,200 square feet of wet laboratory and office space in Nashville, Tennessee by CET, our majority-owned subsidiary, where it operates the CET Life Sciences Center. This lease currently expires in April 2023.

Operating lease liabilities are recorded as the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for lease incentives and initial direct costs. As Cumberland’s leases do not contain implicit borrowing rates, the incremental borrowing rates were calculated based on information available at January 1, 2019. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms. The weighted-average incremental borrowing rate used to discount the present value of the remaining lease payments is 7.42%. The weighted-average remaining lease term at September 30, 2021 is 1.2 years.

Lease Position

At September 30, 2021 and December 31, 2020 , the Company's lease assets and liabilities were as follows:


Right-of-Use Assets	September 30, 2021		December 31, 2020
Operating lease right-of-use assets	$	1,282,275	$	2,028,148


Lease Liabilities	September 30, 2021		December 31, 2020
Operating lease current liabilities	$	1,094,187	$	1,016,779

Operating lease noncurrent liabilities	229,605		1,059,693
Total	$	1,323,792	$	2,076,472

Cumulative future minimum sublease income under non-cancelable operating subleases totals approximately $0.1 million and will be paid through the leases ending in October 2022 and April 2023. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows:


Maturity of Lease Liabilities at September 30, 2021	Operating Leases
2021	$	295,038
2022	1,019,313
2023	92,478
After 2023	—
Total lease payments	1,406,829
Less: Interest	83,037
Present value of lease liabilities	$	1,323,792

Rent expense is recognized over the expected term of the lease, including renewal option periods, if applicable, on a straight-line basis as a component of general and administrative expense. Rent expense and sublease income were as follows:


	Nine months ended September 30,
	2021		2020
Rent expense	$	910,975	$	871,441

Sublease income	$	526,868	$	491,391