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 for two years 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 $2.0 million for the years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the operating lease right-of-use assets were $16.7 million and lease liabilities were $29.0 million in the consolidated balance sheet. The weighted average remaining lease term is 6.8 years.

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

Operating lease cost for the years ended December 31, 2024 and 2023 was $3.8 million and $2.3 million, respectively. Variable lease payments for the years ended December 31, 2024 and 2023 were $2.3 million and $1.5 million, respectively.

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


	(in thousands)
2025	$	5,065
2026		5,242
2027		5,425
2028		5,615
2029 and thereafter		16,985
Total undiscounted lease payments		38,332
Less: Imputed interest		(9,360	)
Total	$	28,972

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