10.    Leases

In August 2015, the Company entered into a sublease to lease approximately 3,950 square feet of office space in Boston, Massachusetts. The Company did not extend the sublease, which expired on December 31, 2022.

In October 2018, Pieris Pharmaceuticals GmbH entered into a new lease for office and laboratory space located in Hallbergmoos, Germany, or the Hallbergmoos Lease. The Hallbergmoos Lease was subsequently amended in May 2019 and February 2020. The Hallbergmoos Lease, as amended, provides an initial rental term of 12.5 years, and a rental area of approximately 105,000 square feet.

Monthly base rent for the initial 105,000 square feet of the leased property, including parking spaces, totaled approximately $0.2 million per month. In addition to the base rent, Pieris Pharmaceuticals GmbH was also responsible for certain administrative and operational costs in accordance with the Hallbergmoos Lease. Pieris Pharmaceuticals GmbH provided a security deposit of $0.8 million as required by the Hallbergmoos Lease. The Company serves as a guarantor for the Hallbergmoos Lease.

The Hallbergmoos Lease included $11.5 million of tenant improvements allowance for normal tenant improvements, for which construction began in March 2019. The Company capitalized the leasehold incentives which are included in property and equipment, net on the condensed consolidated balance sheet and are amortized on a straight-line basis over the shorter of the useful life or the remaining lease term. As part of the strategic review the Company is undertaking, along with the announced workforce restructuring, the Company is evaluating its options to exit the Hallbergmoos Lease. Included in the impairment charges recorded during the third quarter ended September 30, 2023, is a write-down of the entire amount of the leasehold improvement and an impairment of the right of use asset associated with the Hallbergmoos Lease of $1.8 million.

The following table summarizes operating lease costs included in operating expenses (in thousands):

The following table summarizes the weighted-average remaining lease term and discount rate:

Cash paid for amounts included in the measurement of the lease liabilities were $0.5 million for both the three months ended September 30, 2023 and 2022. Cash paid for amounts included in the measurement of the lease liabilities were $1.6 million and for both the nine months ended September 30, 2023 and 2022.

As of September 30, 2023, the maturities of the Company’s operating lease liabilities and future minimum lease payments were as follows (in thousands):

Not included in the above table are amounts to be paid for the Hallbergmoos Lease expansion that were expected to commence in October 2024 under the Hallbergmoos Lease. This amount is estimated to be $3.9 million in aggregate for the period of October 2024 through the end of the lease term.