Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2023
Leases [Abstract]  



Laboratory Lease – South San Francisco, California


In August 2022, the Company, as a lessee, entered into an amended sublease agreement to sublease laboratory and office space in South San Francisco, California. The lease commenced on August 15, 2022. The term of this sublease is for a period of thirty-nine and one-fourth (39.25) months commencing on the effective date, until May 15, 2024. The lease has a gross monthly rent of $16,171 per month, which will increase to $16,656 beginning January 1, 2024.


This lease was accounted for as an operating lease under ASC 842, Leases, which resulted in the recognition of a right of use asset (“ROU asset”) and liability of approximately $569,000 at inception. The ROU asset is recorded as a component of non-current assets and the liability a component of current and non-current liabilities on the Company’s consolidated balance sheets. The Company discounted the future lease payments of this lease using the prevailing collateralized lending rate which would be extended to the Company based on its credit profile relative to the period of inception, and the duration of the lease from inception. The interest rate used in calculating the fair value listed above was 7.8%.


As of September 30, 2023, the Company recognized total ROU assets and lease liabilities as follows:


    As of September 30,
    As of December 31,
Non-current leases - right of use assets   $ 378,453     $ 500,428  
Current liabilities - operating lease liabilities   $ 174,471     $ 160,362  
Non-current liabilities - operating lease liabilities   $ 210,817     $ 344,021  
Operating lease expense   $ 188,206     $ 168,812  
Cash paid for amounts included in the measurement of operating lease liabilities   $
    $ 169,695  


The following table summarizes the maturity of the Company’s operating lease payments as of September 30, 2023:


2023 (remaining)   $ 65,169  
2024     199,872  
2025     183,216  
Total future minimum lease payments   $ 448,257  
Amount representing interest     (62,969 )
Present value of net future minimum lease payments   $ 385,288