Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2023



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 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 $1.6 million for the three months ended March 31, 2022.


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


    2023     2022  
    For the three months ended March 31,  
    2023     2022  
Operating lease cost   $ 415     $ 472  
Variable lease cost     39       96  
Short-term lease cost     18       21  
Total operating lease costs   $ 472     $ 589  


Future minimum lease payments and obligations, which do not include short-term leases, of the Company’s operating lease liabilities as of March 31, 2023 were as follows (in thousands):


Future minimum lease payments and obligations   Operating Leases  
2023, remainder   $ 1,338  
2024     1,815  
2025     1,572  
2026     811  
2027     828  
Thereafter     2,586  
Total undiscounted operating lease payments     8,950  
Less: imputed interest     1,631  
Present value of operating lease liabilities   $ 7,319  


The weighted-average remaining term of the Company’s operating leases was 73 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 March 31, 2023.


Future cash receipts from the Company’s sublease agreements as of March 31, 2023 are as follows (in thousands):


Future cash receipts   Subleases  
2023, remainder   $ 313  
2024     429  
2025     343  
Total future cash receipts   $ 1,085