Leases

9 Months Ended

Sep. 30, 2024

5. LEASES

The Company has entered into non-cancellable operating leases, including a sublease entered into in August 2024 for an office facility in Brisbane, California, that will serve as its corporate headquarters as of November 2024. This sublease expires in 2029. The lease for the Company’s current corporate headquarters expires in November 2024. The Company also leases a facility in South San Francisco, California, that is subleased under a non-cancellable agreement to a third party, which ends concurrently with the original lease in September 2025.

Net lease cost is as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Operating lease cost	$	669		$	644		$	1,940		$	1,933
Sublease income		(487	)		(482	)		(1,462	)		(1,446	)
Net lease cost	$	182		$	162		$	478		$	487

As of September 30, 2024, under the terms of the sublease agreement of the South San Francisco facility to a third party, the Company is entitled to receive future annual sublease payments as follows (in thousands):


2024 (remaining)		491
2025		1,496
Total sublease payments	$	1,987

As tenant under the South San Francisco facility lease, the Company remains responsible for minimum lease commitments of $2.5 million as of September 30, 2024.

As of September 30, 2024, the future undiscounted lease payments under operating leases recognized in the condensed financial statements was $6.1 million. The weighted-average remaining lease term was 3.0 years and the weighted-average discount rate was 9.1%. As of September 30, 2024, the Company had not executed any leases that were yet to commence.