4. Leases

In December 2019, the Company entered a 36-month lease for office space in Princeton, New Jersey, which commenced February 1, 2020. In May 2022, the Company amended the existing lease agreement in order to increase the lease term by approximately three years, which has been accounted for as a lease modification. The operating lease right-of-use asset and liability were remeasured at the modification date, resulting in an increase to both balances of $0.2 million.

The components of lease expense for the years ended September 30, 2022 and 2021 are as follows:

Schedule of Lease Expenses 

At September 30, 2022, the weighted average remaining lease term was 3.5 years and the weighted average discount rate was 12%.

Cash flow information related to operating leases for the years ended September 30, 2022 and 2021 is as follows:

Schedule of Operating Lease Liabilities 

Sonnet BioTherapeutics Holdings, Inc.

Notes to Consolidated Financial Statements

Future minimum lease payments under non-cancellable leases at September 30, 2022 are as follows:

 Schedule of Future Minimum Lease Payments