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| LEASES |
NOTE 8 – LEASES
The Company leases space under operating leases for administrative, manufacturing and laboratory facilities in Cleveland, Ohio. The Company also leases office space in New York, New York, that the Company sublets. 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.
In June 2023, the Company terminated one of its operating leases for office space. The termination resulted in a gain of $1.1 million from the difference of the right-of-use assets and lease liabilities in the three and six months ended June 30, 2023 and is included in loss/(gain) on right-of-use lease assets in the condensed consolidated statement of operations and comprehensive loss.
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 six months ended June 30, 2022.
The following table provides a summary of the components of lease costs and rent (in thousands):
Future minimum lease payments and obligations, which do not include short-term leases, of the Company’s operating lease liabilities as of June 30, 2023 were as follows (in thousands):
The weighted-average remaining term of the Company’s operating leases was 68 months and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 7.5% as of June 30, 2023.
Future cash receipts from the Company’s sublease agreements as of June 30, 2023 are as follows (in thousands):
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