XML 35 R19.htm IDEA: XBRL DOCUMENT v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.
Facility Leases
The Company previously leased a facility located in Redwood City, California. In September 2023, the Company exited the facility. In October 2023, the lease expired and was not renewed.
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 Company began operations in at this facility in September 2023. 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 expects to 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. During the year ended December 31, 2022, the Company recorded both an right-of-use asset and liability of $22.7 million related to the lease. 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 is payable monthly.
The following table presents supplemental lease information:
Year Ended December 31,
202320222021
Weighted-average lease term9.2 years9.4 years
1.8 years
Weighted-average discount rate8.5%8.7%10.8%
Rent expense recognized under the leases, including additional rent charges for utilities, parking, maintenance and real estate taxes, was $8.4 million, $5.1 million and $2.7 million for the years ended December 31, 2023, 2022, and 2021, respectively.
Future minimum annual operating lease and debt repayments are as follows (in thousands):
As of December 31, 2023
Minimum Lease PaymentsDebt RepaymentsTotal
2024$4,184 $— $4,184 
20254,297 4,333 8,630 
20264,426 26,000 30,426 
20274,808 21,667 26,475 
20284,952 — 4,952 
Thereafter22,297 — 22,297 
Total minimum payments44,964 52,000 96,964 
Less: amount representing interest/unamortized debt discount/tenant improvement allowance
(17,099)(661)(17,760)
Present value of future payments27,865 51,339 79,204 
As of December 31, 2023 and 2022, the Company’s security deposit is in the form of, and recorded as, restricted cash.
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 December 31, 2023, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.
Facility Leases
The Company previously leased a facility located in Redwood City, California. In September 2023, the Company exited the facility. In October 2023, the lease expired and was not renewed.
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 Company began operations in at this facility in September 2023. 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 expects to 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. During the year ended December 31, 2022, the Company recorded both an right-of-use asset and liability of $22.7 million related to the lease. 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 is payable monthly.
The following table presents supplemental lease information:
Year Ended December 31,
202320222021
Weighted-average lease term9.2 years9.4 years
1.8 years
Weighted-average discount rate8.5%8.7%10.8%
Rent expense recognized under the leases, including additional rent charges for utilities, parking, maintenance and real estate taxes, was $8.4 million, $5.1 million and $2.7 million for the years ended December 31, 2023, 2022, and 2021, respectively.
Future minimum annual operating lease and debt repayments are as follows (in thousands):
As of December 31, 2023
Minimum Lease PaymentsDebt RepaymentsTotal
2024$4,184 $— $4,184 
20254,297 4,333 8,630 
20264,426 26,000 30,426 
20274,808 21,667 26,475 
20284,952 — 4,952 
Thereafter22,297 — 22,297 
Total minimum payments44,964 52,000 96,964 
Less: amount representing interest/unamortized debt discount/tenant improvement allowance
(17,099)(661)(17,760)
Present value of future payments27,865 51,339 79,204 
As of December 31, 2023 and 2022, the Company’s security deposit is in the form of, and recorded as, restricted cash.