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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Guarantees and Indemnifications
In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. As of June 30, 2022 and December 31, 2021, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.
Facility Lease
In July 2013, the Company entered into a lease agreement for its current facility located in Redwood City, California. In 2018, the Company expanded the lease space and extended the lease agreement through October 2023. The lease agreement provides for an escalation of rent payments each year and the Company records rent expense on a straight-line basis over the term of the lease.
Rent expense recognized under the lease, including additional rent charges for utilities, parking, maintenance, and real estate taxes, was $0.7 million for both the three months ended June 30, 2022 and 2021, respectively, and $1.4 million and $1.3 million for the six months ended June 30, 2022 and 2021, respectively.
As of June 30, 2022
Minimum Lease PaymentsDebt RepaymentsTotal
2022$1,238 $— $1,238 
20232,092 12,500 14,592 
2024— 37,500 37,500 
Total minimum payments3,330 50,000 53,330 
Less: amount representing interest/unamortized debt discount(243)507 264 
Present value of future payments3,087 50,507 53,594 
Less: current portion(2,258)— (2,258)
Non-current portion$829 $50,507 $51,336 
As of June 30, 2022 and December 31, 2021, the Company’s security deposit is in the form of, and recorded as, restricted cash.
In December 2021, the Company entered into a lease for two existing buildings, comprising approximately 158,221 square feet of space, located in San Jose, California. The lease commenced in July 2022, and will continue for 122 months following thereafter, with two five year options to extend the term of the lease. The Lease provides for annual base rent of $4.3 million for the first year, which increases on a yearly basis up to $5.5 million for the tenth year, for an aggregate of $49.2 million. Under the terms of the lease, the Company will receive an allowance of up to $7.9 million from the landlord to be applied to the Company’s construction of tenant improvements following the landlord’s delivery of the two buildings to the Company. The Company is currently assessing the accounting impact of the lease on its consolidated financial statements.
Commitments and Contingencies Commitments and Contingencies
Guarantees and Indemnifications
In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. As of June 30, 2022 and December 31, 2021, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.
Facility Lease
In July 2013, the Company entered into a lease agreement for its current facility located in Redwood City, California. In 2018, the Company expanded the lease space and extended the lease agreement through October 2023. The lease agreement provides for an escalation of rent payments each year and the Company records rent expense on a straight-line basis over the term of the lease.
Rent expense recognized under the lease, including additional rent charges for utilities, parking, maintenance, and real estate taxes, was $0.7 million for both the three months ended June 30, 2022 and 2021, respectively, and $1.4 million and $1.3 million for the six months ended June 30, 2022 and 2021, respectively.
As of June 30, 2022
Minimum Lease PaymentsDebt RepaymentsTotal
2022$1,238 $— $1,238 
20232,092 12,500 14,592 
2024— 37,500 37,500 
Total minimum payments3,330 50,000 53,330 
Less: amount representing interest/unamortized debt discount(243)507 264 
Present value of future payments3,087 50,507 53,594 
Less: current portion(2,258)— (2,258)
Non-current portion$829 $50,507 $51,336 
As of June 30, 2022 and December 31, 2021, the Company’s security deposit is in the form of, and recorded as, restricted cash.
In December 2021, the Company entered into a lease for two existing buildings, comprising approximately 158,221 square feet of space, located in San Jose, California. The lease commenced in July 2022, and will continue for 122 months following thereafter, with two five year options to extend the term of the lease. The Lease provides for annual base rent of $4.3 million for the first year, which increases on a yearly basis up to $5.5 million for the tenth year, for an aggregate of $49.2 million. Under the terms of the lease, the Company will receive an allowance of up to $7.9 million from the landlord to be applied to the Company’s construction of tenant improvements following the landlord’s delivery of the two buildings to the Company. The Company is currently assessing the accounting impact of the lease on its consolidated financial statements.