Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases

Note 10. Leases

The Company has two operating leases for office and manufacturing space which require it to pay base rent and certain utilities. Monthly rent expense is recognized on a straight-line basis over the terms of the leases, which expire in 2027 and December 2021.

 

At September 30, 2021, the weighted average remaining lease term was 6.3 years. The operating leases are included in the condensed balance sheets at the present value of the lease payments at a 7% discount rate which approximates the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment, as the leases do not provide an implicit rate.

 

For each of the three months ended September 30, 2021 and 2020, operating lease expense and cash paid for leases was $0.1 million. For each of the nine months ended September 30, 2021 and 2020, operating lease expense and cash paid for leases was $0.4 million. Amortization for operating lease right-of-use assets was $0.1 million for each of the three months ended September 30, 2021 and 2020 and $0.3 million for each of the nine months ended September 30, 2021 and 2020. Variable costs were de minimis.

Maturities of operating lease liabilities as of September 30, 2021 were as follows (in thousands):

 

Years Ending December 31,

 

 

 

 

2021 (remaining three months)

 

$

132

 

2022

 

 

432

 

2023

 

 

445

 

2024

 

 

459

 

2025

 

 

472

 

2026

 

 

486

 

Thereafter

 

 

501

 

Total operating lease payments

 

 

2,927

 

Less: imputed interest

 

 

(572

)

Total operating lease liabilities

 

$

2,355