LEASES |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES |
NOTE 10 – LEASES
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.
During 2022, the Company announced a strategic partner to take over development activities of ABO-102 and that the Company was discontinuing development of ABO-101. As a result, 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 year ended December 31, 2022.
In November 2022, the Company entered into a sublease agreement with an unrelated third party to occupy approximately 5,700 square feet of the Company’s administrative offices in New York, New York. Because the future sublease income under the executed sublease agreement is less than the amount the Company pays its landlord, the Company recorded an impairment charge of $0.9 million for the year ended December 31, 2022. The Company expects to receive approximately $1.1 million in future sublease income through September 2025.
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 December 31, 2022 were as follows (in thousands):
The weighted-average remaining term of the Company’s operating leases was 76 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 December 31, 2022.
Future cash receipts from the Company’s sublease agreements as of December 31, 2022 are as follows (in thousands):
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