Leases

3 Months Ended

Mar. 31, 2025

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 each of the three months ended March 31, 2025 and 2024 was approximately $9,000.

Cash paid for operating leases for the three months ended March 31, 2025 was approximately $17,000. The Company paid $3,000 for operating leases for the three months ended March 31, 2024.

The following table summarizes the balance sheet classification of the operating lease asset and related lease liabilities as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025		December 31, 2024

Right-of-use asset, net	$	116	$	122

Lease liability, current portion	29		28
Lease liability, net of current portion	102		110
	$	131	$	138

The following variables were used to determine the right-of-use asset and the operating lease liabilities at March 31, 2025 and 2024:


	March 31, 2025		March 31, 2024
Weighted average remaining lease term	3.9 years		5.4 years
Weighted average operating lease discount rate	6.4	%	6.4	%

Future minimum lease payments under the lease agreement as of March 31, 2025 were as follows (in thousands):


Year ended
2025 (remainder of year)	$	27
2026	37
2027	39
2028	39
2029	7
Total lease payments	149
Less: Amounts representing interest	(18)
Present value of lease liabilities	$	131