Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2022



The Company leases space under operating leases for manufacturing and laboratory facilities in Cleveland, Ohio, as well as administrative offices in New York, New York. The Company also leases office space in Madrid, Spain as well as certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and, therefore, the Company has elected the practical expedient to exclude these short-term leases from the Company’s right-of-use assets and lease liabilities.


On March 31, 2022, the Company announced that they were pursuing a strategic partner to take over development activities of ABO-102 and that the Company was discontinuing development of ABO-101. As a result of this shift in priorities, the Company determined the portion of the lease that was dedicated to the future facility for the ABO-101 and ABO-102 programs, had no future value and thus, the Company recorded an impairment charge of nil and $1.6 million for the three and nine months ended September 30, 2022, respectively.


The following table provides a summary of the components of lease costs and rent (in thousands):


    2022     2021     2022     2021  

For the three months ended

September 30,


For the nine months ended

September 30,

    2022     2021     2022     2021  
Operating lease cost   $ 467     $ 434     $ 1,400     $ 1,302  
Variable lease cost     154       105       366       344  
Short-term lease cost     17       13       58       23  
Total operating lease costs   $ 638     $ 552     $ 1,824     $ 1,669  



Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of September 30, 2022 are as follows:


Maturity of lease liabilities:   (in thousands)  
Remainder of 2022   $ 446  
2023     1,829  
2024     1,872  
2025     1,631  
2026     871  
Thereafter     3,662  
Total undiscounted operating lease payments     10,311  
Less: imputed interest     2,017  
Present value of operating lease liabilities   $ 8,294  


The weighted-average remaining term of the Company’s operating leases was 79 months and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 7.2% as of September 30, 2022.