Quarterly report pursuant to Section 13 or 15(d)

Commitments

Commitments

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments

7. Commitments

Operating Leases

In December 2010, the Company entered into a

non-cancellable

operating lease for office space and laboratory facilities in Yonkers, New York expiring in December 2025. In December 2011, the Company entered into an amendment which extended the term of the lease through December 2027 (the “Third Floor Lease”). The lease provides for the option to renew for two additional five-year terms. The premises were occupied in June 2011. Monthly rent payments began the date the office and laboratory facilities were ready for occupancy.

In January 2012, the Company entered into a

non-cancellable

operating lease for additional office space and laboratory facilities in the same building in Yonkers, New York expiring in December 2027 (the “Fourth Floor Lease”). The Fourth Floor Lease provides for an option to renew for two additional five-year terms. Effective August 1, 2017, the Company relinquished 10,912 square feet of space under the Fourth Floor Lease and was relieved of its obligations related to such space.

The Company performed an evaluation of its other contracts in accordance with Topic 842 and has determined that, except for the leases described above, none of its contracts contain a lease.

The balance sheet classification of the Company’s lease liabilities was as follows (in thousands):


Description	March 31, 2021		December 31, 2020
Operating lease liabilities:
Current portion of lease liabilities	$	648	$	644
Long-term portion of lease liabilities	$	2,875	$	2,959

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. The leases are renewable at the end of the lease term at our option. For the purposes of determining the remaining lease term in contemplation of available extensions, the Company did not consider either renewal to be probable at this time. In determining the present value of lease payments, the Company estimated its incremental borrowing rate, or discount rate, based on the information available at the adoption date of Topic 842. The discount rate used to determine the operating lease liability was

9.93%.

As of March 31, 2021, the maturities of our operating lease liabilities were as follows (in thousands):


	Amount
April 1, 2021 - December 31, 2021	$	510
Year ending December 31:
2022		693
2023		707
2024		721
2025		736
Thereafter		1,452

Total lease payments		4,819
Less: Present value adjustment		(1,296	)

Operating lease liabilities		3,523

Lease costs under the terms of the Company’s leases for the three months ended March 31, 2021 and 2020 were as follows (in thousands):


	March 31,
	2021		2020
Operating lease cost (1)	$	153	$	153
Variable lease costs (2)		30		21

Total lease cost	$	183	$	174

(1)	Operating lease payments included in the measurement of the Company’s lease liabilities are comprised of fixed payments according to the terms of the Company’s leases.

(2)

Variable lease payments consist of the Company’s utility costs billed by and paid to its landlord. Variable lease payments are presented as operating expenses in the Company’s Consolidated Statement of Operations in the same line item as expense arising from fixed lease payments and in net cash used in operating activities in the Company’s Statement of Cash Flows.