Leases

12 Months Ended

Dec. 31, 2022

5. Leases

Operating Lease Obligations

In January 2021, we entered into a lease agreement for our current corporate headquarters facility located in San Carlos, California and a license agreement for temporary lab and office space in Palo Alto, California. The lease term for our current corporate headquarters facility began on January 22, 2021 and expires on December 31, 2025. We have two 60-month renewal options. The original term of the license agreement for the temporary space in Palo Alto terminated when the San Carlos office leasehold improvements were completed and we moved into our current corporate headquarters. We extended the license agreement for the Palo Alto office by 60 days to March 3, 2022 to accommodate our relocation plan. These two agreements are accounted for as a combined lease because the contracts were negotiated as a package with the same commercial objective. Upon commencement of the San Carlos lease in December 2021, we recorded a ROU asset and lease liability of $28.4 million and $12.9 million, respectively.

In July 2016, we entered into a five-year lease agreement for our previous headquarters facility located in Foster City, California. The original term of the lease was from September 1, 2016 to August 31, 2021, with two 30-month renewal options. In July 2019, we leased another facility in Foster City, California as a result of growth in personnel and lab space requirements. The original term of this lease was from July 1, 2019 to October 31, 2021, with no renewal options. In November 2020, we extended the terms of both of these leases for six months to March 1, 2022 and April 30, 2022, respectively. In February 2022, we entered into an early termination agreement for one of the facilities in Foster City and terminated our lease on February 12, 2022 instead of April 30, 2022.

Information related to our ROU assets and related lease liabilities was as follows (dollar amounts in thousands):


	December 31,			December 31,
	2022			2021
Cash paid for operating lease liabilities	$	5,374		$	924
Operating lease right-of-use assets	$	21,288		$	27,958

Current operating lease liabilities	$	5,910		$	5,276
Non-current operating lease liabilities		12,031			11,507
Total lease liabilities	$	17,941		$	16,783
Weighted-average remaining lease term (in years)		2.78			3.75
Weighted-average discount rate		7.6	%		7.5	%

Maturities of lease liabilities as of December 31, 2022 were as follows:


Years ending December 31,	(in thousands)
2023	$	6,684
2024		6,850
2025		7,022
Thereafter		—
Total future undiscounted lease payments		20,556
Less: Imputed interest		(2,615	)
Total lease liabilities	$	17,941

Future minimum payments required under operating leases as of December 31, 2021 were as follows:


	(in thousands)
Years ending December 31,
2022(1)	$	(105	)
2023		6,639
2024		6,805
2025		6,976
Thereafter		—
Total future undiscounted lease payments		20,315
Less: Imputed interest		(3,532	)
Total lease liabilities	$	16,783

______________________________________

(1)

Maturities for 2022 are net of lease incentives of $0.9 million allocated to the Palo Alto office.

Rent expense recognized under the leases was $7.9 million, $3.2 million and $0.7 million for the years ended December 31, 2022, 2021 and 2020, respectively.