Leases

12 Months Ended

Dec. 31, 2022

11. Leases

Operating Lease

In December 2015, the Company entered into a lease (the “2016 Lease”) of office and laboratory space located in South San Francisco, California for the Company’s corporate headquarters. The 2016 Lease has an initial term of ten years through 2026 and the Company has an option to extend the initial term for an additional five years at the then fair rental value as determined pursuant to the 2016 Lease.

In addition, the Company obtained a standby letter of credit (the “Letter of Credit”) in an amount of approximately $0.9 million, which may be drawn by the Landlord to be applied for certain purposes upon the Company’s breach of any provisions under the 2016 Lease. The Company recorded the $0.9 million of cash securing the Letter of Credit as non-current restricted cash on its balance sheet as of December 31, 2022 and 2021. Rent expense during the years ended December 31, 2022 and 2021 was $5.1 million and $5.1 million, respectively.

Supplemental information related to leases are as follows:


	Year Ended
	December 31, 2022			December 31, 2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	5,273		$	5,129

	December 31, 2022			December 31, 2021
	(in thousands)
Supplemental balance sheet information related to leases:
Operating lease right-of-use assets	$	15,949		$	19,362
Current operating lease liabilities		4,082			3,618
Non-current operating lease liabilities		13,975			18,056
Total operating lease liabilities	$	18,057		$	21,674

Weighted-average remaining lease term (in years)
Operating lease	3.75			4.75
Weighted-average discount rate
Operating lease		8.25	%		8.25	%


	December 31, 2022
	(in thousands)
Maturity of operating lease liabilities
2023		5,420
2024		5,572
2025		5,729
2026		4,388
Total lease payments		21,109
Less imputed interest		(3,052	)
Present value of lease liabilities	$	18,057