v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The Company has an operating lease for its office and lab space in Cambridge, Massachusetts and operating and finance leases for certain equipment. In March 2020, the Company entered into the Seventh Amendment to the office and lab space lease ("the Office Lease") to extend the term of the lease through March 2026. The Company has an option to extend the lease term of the Office Lease for an additional five years.
On April 5, 2021, the Company entered into an Eighth Amendment to the Office Lease, which granted the Company additional office space in its existing building for five years, beginning July 1, 2021, and committed the Company to lease payments of $5.0 million over that period (the "Expansion Lease"). Independent from the option under the Office Lease, the Company has an option to extend the lease term of the Expansion Lease for an additional five years. The Company’s exercise of the options to extend the lease terms of both the Office Lease and Expansion Lease were not considered reasonably certain as of December 31, 2023.
The Expansion Agreement is a lease modification accounted for as a separate contract, because it expands the scope of the Office Lease and the additional lease payments are commensurate with market rents. The Company assessed the lease classification of the Expansion Lease as of the date of signing and determined that the Expansion Lease should be accounted for as an operating lease. The right-of-use asset and corresponding operating lease liability have been calculated based on the present value of lease payments over the lease term. The Company determined the appropriate incremental borrowing rate to utilize as a discount rate by using a synthetic credit rating which was estimated based on an analysis of outstanding debt of companies with similar credit and financial profiles. Since the operating lease is a net lease, as the non-lease components (i.e., common area maintenance) are paid separately from rent based on actual costs incurred, such non-lease components were not included in the ROU asset and liability and are reflected as an expense in the period incurred.
The Company had a standby letter of credit agreement for the benefit of its landlord in the amount of $0.5 million in connection with the Office Lease and Expansion Lease as of December 31, 2023 and 2022.
The Company has remaining finance lease terms of one year to five years for certain equipment, some of which include options to purchase at fair value.
The components of lease expense included in research and development and general and administrative expenses in the statement of operations and comprehensive loss were as follows:
Years ended December 31,
(in thousands)202320222021
Operating lease cost$3,838 $3,793 $3,502 
Finance lease cost:
Amortization of right-of-use assets$185 $194 $169 
Interest on lease liabilities16 28 28 
$201 $222 $197 
Supplemental balance sheet information related to leases was as follows:
Year ended December 31,
20232022
Operating leases:
Operating lease right-of-use assets$7,694 $10,475 
Operating lease liabilities, current$3,252 $2,798 
Operating lease liabilities$5,149 $8,575 
Finance leases:
Property and equipment, gross$1,038 $1,038 
Property and equipment, accumulated depreciation$(723)$(539)
Other liabilities, current$144 $240 
Other liabilities$54 $203 
Weighted-average remaining lease term:
Operating leases2.3 years3.3 years
Finance leases1.1 years2.0 years
Weighted-average discount rate:
Operating leases10.8 %10.8 %
Finance leases4.4 %5.4 %
Supplemental cash flow information related to leases was as follows:
Year ended December 31,
(in thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$4,029 $3,865 
Operating cash flows from finance leases$16 $28 
Financing cash flows from finance leases$262 $272 
Future lease payments under non-cancellable leases as of December 31, 2023 were as follows:
(in thousands)Operating leasesFinance leases
2024$3,975 $141 
20254,187 48 
20261,310 8 
2027 and thereafter
— — 
Total lease payments9,472 197 
Present value adjustment(1,069)— 
Present value of lease liabilities$8,403 $197 
Leases Leases
The Company has an operating lease for its office and lab space in Cambridge, Massachusetts and operating and finance leases for certain equipment. In March 2020, the Company entered into the Seventh Amendment to the office and lab space lease ("the Office Lease") to extend the term of the lease through March 2026. The Company has an option to extend the lease term of the Office Lease for an additional five years.
On April 5, 2021, the Company entered into an Eighth Amendment to the Office Lease, which granted the Company additional office space in its existing building for five years, beginning July 1, 2021, and committed the Company to lease payments of $5.0 million over that period (the "Expansion Lease"). Independent from the option under the Office Lease, the Company has an option to extend the lease term of the Expansion Lease for an additional five years. The Company’s exercise of the options to extend the lease terms of both the Office Lease and Expansion Lease were not considered reasonably certain as of December 31, 2023.
The Expansion Agreement is a lease modification accounted for as a separate contract, because it expands the scope of the Office Lease and the additional lease payments are commensurate with market rents. The Company assessed the lease classification of the Expansion Lease as of the date of signing and determined that the Expansion Lease should be accounted for as an operating lease. The right-of-use asset and corresponding operating lease liability have been calculated based on the present value of lease payments over the lease term. The Company determined the appropriate incremental borrowing rate to utilize as a discount rate by using a synthetic credit rating which was estimated based on an analysis of outstanding debt of companies with similar credit and financial profiles. Since the operating lease is a net lease, as the non-lease components (i.e., common area maintenance) are paid separately from rent based on actual costs incurred, such non-lease components were not included in the ROU asset and liability and are reflected as an expense in the period incurred.
The Company had a standby letter of credit agreement for the benefit of its landlord in the amount of $0.5 million in connection with the Office Lease and Expansion Lease as of December 31, 2023 and 2022.
The Company has remaining finance lease terms of one year to five years for certain equipment, some of which include options to purchase at fair value.
The components of lease expense included in research and development and general and administrative expenses in the statement of operations and comprehensive loss were as follows:
Years ended December 31,
(in thousands)202320222021
Operating lease cost$3,838 $3,793 $3,502 
Finance lease cost:
Amortization of right-of-use assets$185 $194 $169 
Interest on lease liabilities16 28 28 
$201 $222 $197 
Supplemental balance sheet information related to leases was as follows:
Year ended December 31,
20232022
Operating leases:
Operating lease right-of-use assets$7,694 $10,475 
Operating lease liabilities, current$3,252 $2,798 
Operating lease liabilities$5,149 $8,575 
Finance leases:
Property and equipment, gross$1,038 $1,038 
Property and equipment, accumulated depreciation$(723)$(539)
Other liabilities, current$144 $240 
Other liabilities$54 $203 
Weighted-average remaining lease term:
Operating leases2.3 years3.3 years
Finance leases1.1 years2.0 years
Weighted-average discount rate:
Operating leases10.8 %10.8 %
Finance leases4.4 %5.4 %
Supplemental cash flow information related to leases was as follows:
Year ended December 31,
(in thousands)20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$4,029 $3,865 
Operating cash flows from finance leases$16 $28 
Financing cash flows from finance leases$262 $272 
Future lease payments under non-cancellable leases as of December 31, 2023 were as follows:
(in thousands)Operating leasesFinance leases
2024$3,975 $141 
20254,187 48 
20261,310 8 
2027 and thereafter
— — 
Total lease payments9,472 197 
Present value adjustment(1,069)— 
Present value of lease liabilities$8,403 $197