Note 7. Leases

The Company leases its laboratory, research and administrative office spaces under various operating leases. In March 2021, the Company recorded $198 thousand of ROU assets and liabilities upon consummation of the Merger. As of April 1, 2021 the Company commenced a new lease for its corporate headquarters. The Company recorded a ROU asset and operating lease obligation of $83 thousand related to this lease.

Amounts reported in the consolidated balance sheet as of September 30, 2021 and December 31, 2020 are as follows:

 Schedule of Amounts Reported in the Consolidated Balance Sheet

Equipment subject to finance leases are classified within fixed assets, net, on the accompanying consolidated balance sheets.

Annual payments of lease liabilities under noncancelable leases as of September 30, 2021 are as follows:

Schedule of Annual Payments of Lease Liabilities Under Noncancelable Leases