The Company leases its offices and laboratory in Brisbane, California, or the Brisbane Lease, under a ten-year noncancelable lease agreement that ends in October 2031 with a ten-year renewable option. In November 2021, the Company subleased unoccupied space from December 2021 through November 2023, for aggregate sublease payments of $3.4 million. The sublease income, while it reduces the rent expense, is not considered in the value of the right-of-use assets or lease liabilities. The Company’s sublease income was zero and $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, the operating lease right-of-use assets were $17.7 million and lease liabilities were $30.8 million on the condensed consolidated balance sheet. The weighted-average remaining lease term is 7.6 years.

The weighted-average incremental borrowing rate used to measure the operating lease liability is 8.4%.

Operating lease costs were $1.0 million and $0.5 million for the three months ended March 31, 2024 and 2023, respectively. Variable lease payments were $0.5 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

Future minimum lease payments and related lease liabilities as of March 31, 2024, were as follows:


	(in thousands)
2024 (remaining nine months)	$	3,677
2025		5,065
2026		5,242
2027		5,425
2028 and thereafter		22,600
Total undiscounted lease payments		42,009
Less: Imputed interest		(11,224	)
Total	$	30,785

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 March 31, 2024, the Company did not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities.