Leases

6 Months Ended

Jun. 30, 2024

In January 2017, the Company entered into a lease for approximately 2,500 square feet of office space in Westport, Connecticut, (the “Westport Lease”), which was subsequently extended and increased to approximately 4,000 square feet. In June 2023, the Westport Lease was terminated.

In July 2023, the Company signed a 5.5-year lease for approximately 2,700 square feet of office space in Shelton, Connecticut, (the “Shelton Lease”). The Company has a one-time option to cancel the Shelton Lease after 36 months if it provides written notice before the end of month 30. A payment of approximately $47,000 would be due at the end of month 36 if the Company exercises this option. This option is not reasonably certain to occur.

Rent expense for the six months ended June 30, 2024 and 2023 was approximately $17,000 and $46,000, respectively. Cash paid for operating leases for the six months ended June 30, 2024 and 2023 was approximately $22,000 and $49,000, respectively.

The following table summarizes the balance sheet classification of the operating lease asset and related lease liabilities as of June 30, 2024 and December 31, 2023 (in thousands):


	June 30, 2024		December 31, 2023

Right-of-use asset, net	$	135	$	147

Lease liability, current portion	27		20
Lease liability, net of current portion	124		138
	$	151	$	158

The following variables were used to determine the right-of-use asset and the operating lease liabilities at June 30, 2023 and 2022:


	June 30, 2024		June 30, 2023
Weighted average remaining lease term	4.9 years		5.2 years
Weighted average operating lease discount rate	6.4	%	6.4	%

Future minimum lease payments under the lease agreement as of June 30, 2024 were as follows (in thousands):


Year ended
2024 (remainder of year)	$	18
2025	36
2026	37
2027	39
2028 and thereafter	46
Total lease payments	176
Less: Amounts representing interest	(25)
Present value of lease liabilities	$	151