NOTE 9 – LEASES

The Company has operating leases for administrative offices and research and development facilities, and certain finance leases for equipment. The operating leases have remaining terms of less than one year to less than seven years. Leases with an initial term of 12 months or less will not be recorded on the condensed consolidated balance sheets as operating leases or finance leases, and the Company will recognize lease expense for these leases on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term for five years. The exercise of lease renewal options for the Company’s existing leases is at the Company’s sole discretion and not included in the measurement of lease liability and ROU asset as they are not reasonably certain to be exercised. Certain finance leases also include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The leases do not contain any residual value guarantees or material restrictive covenants.

In September 2021, the Company permanently vacated its office space of approximately 10,000 square feet in Jersey City, New Jersey. The space was vacated because employees have transitioned to long-term remote working arrangements or the Company’s office space in New York, New York. The abandonment of leased space is an indicator of impairment and the Company assessed the lease ROU asset for impairment.

During the three months ended September 30, 2021, the Company recorded non-cash impairment charges related to the impairment of the lease ROU assets of $0.6 million, which is recorded in general and administrative expenses.

The following table summarizes the components of lease expense for the three and nine months ended September 30, 2021 (in thousands):

The following table summarizes the balance sheet classification of leases at September 30, 2021 (in thousands):

The following table presents other information on leases as of September 30, 2021 and December 31, 2020:

Maturities of lease liabilities were as follows as of September 30, 2021 (in thousands):

Supplemental cash flow information related to the Company’s leases were as follows (in thousands):