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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 9. Commitments and Contingencies Operating Lease Commitments Prior to the adoption of ASC 842, the Company recognized rent expense for its operating leases on a straight-line basis over the noncancelable lease term and recorded the difference between rent payments and the straight-line rent expense was recorded as a deferred rent liability. As of December 31, 2020, the Company performed an evaluation of its other contracts with customers and suppliers in accordance with ASC 842 and determined that, except for the leases described below, none of the Company’s contracts contain a material lease. 5980 Horton Street Building Lease In May 2015, the Company executed a lease agreement for office and laboratory space in Emeryville, California. In January 2016, the Company executed the first amendment to the lease agreement for additional rentable office and laboratory space which extended the lease term to March 31, 2023 and updated the option to renew the lease at market rent from the prior additional term of three years to five years. In October 2018, the Company executed a second amendment to extend the lease to September 2026. Additionally, the second amendment provided a tenant improvement allowance of $0.2 million, which was paid to the Company in November 2018. The 5980 Horton Street Building Lease is considered an operating lease under ASC 842 as it does not meet the criteria of a finance lease. As of December 31, 2021, the operating lease right-of-use asset and operating lease liability was $1.9 million and $2.3 million, respectively. The discount rate used to determine the lease liability was 7.5%. 5858 Horton Street Building Lease and Expansion In October 2018, the Company executed a second lease agreement for additional office and laboratory space in Emeryville, California. The new lease has an initial term of 87 months beginning on the rent commencement date with the option to renew the lease for one additional term of five years at market rent. The Company did not have to pay rent until October 2019. This lease agreement also provided for a tenant improvement allowance of $0.4 million, which was paid to the Company in December 2019. The Company amortizes the tenant improvement allowance on a straight-line basis over the remaining term of the lease as a reduction of rent expense. In May 2019, the Company amended the second lease agreement executed in October 2018 to add additional office and laboratory space (the "Expansion"). The amendment extended the term of the lease to December 31, 2029. The Company did not have to pay rent until December 2019. The lease agreement also included a tenant improvement allowance, which was increased to $2.3 million in February 2021 pursuant to a second amendment to the second lease agreement. In November 2021, the Company received the first installment of this tenant improvement allowance of $0.6 million. The tenant improvement allowance funds improvements to the additional office and laboratory space, which the Company has determined to be lessee owned. The allowance is treated as a reduction of lease payments used to measure the lease liability. The 5858 Horton Street Building Lease and Expansion is considered an operating lease under ASC 842 as it does not meet the criteria of a finance lease. As of December 31, 2021, the operating lease right-of-use asset and operating lease liability was $12.6 million and $14.2 million, respectively. The discount rate used to determine the lease liability was 7.8%. Total operating lease expense for the year ended December 31, 2021 was $2.6 million. Cash paid for amounts included in the measurement of lease liabilities was $2.3 million for the year ended December 31, 2021. Neither of the leases include a general option for the Company to terminate the leases. The following table summarizes the components of lease expense for the year ended December 31, 2021, which are included in operating expenses in the Company’s statements of operations (in thousands):
Operating lease cost |  | $ | 2,631 |
Variable lease cost |  |  | 914 |
Total |  | $ | 3,545 |
Variable lease payments include amounts relating to common area maintenance and are recognized in the statements of operations as incurred. The following table summarizes supplemental information related to operating leases for the year ended December 31, 2021:
Weighted-average remaining lease term (in years): |  |  | 7.6 |
Weighted-average discount rate: |  |  | 7.8 | %
The following table summarizes the maturities of lease liabilities as of December 31, 2021 (in thousands):
2022 |  | $ | 1,230 |
2023 |  |  | 3,058 |
2024 |  |  | 3,149 |
2025 |  |  | 3,244 |
2026 |  |  | 3,135 |
Thereafter |  |  | 8,686 |
Total future minimum lease payments |  |  | 22,502 |
Less: Amount representing interest |  |  | (6,054 | )
Present value of future minimum lease payments |  |  | 16,448 |
Less: Current portion of operating lease liabilities |  |  | 1,231 |
Long-term portion of operating lease liabilities |  | $ | 15,217 |
Indemnification Agreements In the ordinary course of business, the Company enters into agreements that may include indemnification provisions, such as with vendors and other parties. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently maintains directors’ and officers’ liability insurance that would generally enable it to recover a portion of any future amounts paid. The Company believes the estimated fair value of its indemnification agreements in excess of applicable insurance coverage is not material. Legal Proceedings From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. If applicable, the Company records a legal liability when it believes that it is both probable that a liability may be imputed, and the amount of the liability can be reasonably estimated. Significant judgment by the Company is required to determine both probability and the estimated amount. There are no material legal proceedings outstanding at December 31, 2021. See Note 14 for details of a settlement with a former employee in April 2021.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 440 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6491277&loc=d3e6429-115629 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123406679&loc=d3e25336-109308 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123406679&loc=d3e25336-109308 + Details
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