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Leases

12 Months Ended

Dec. 31, 2022

9.Leases

The Company leases approximately 47,789 square feet of office space for its corporate headquarters in Redwood City, California. This lease terminates in September 2024 and contains a one-time option to extend the lease term for five years. The Company also leases approximately 25,017 square feet for its laboratory facilities in Camarillo, California which commenced in January 2020. This lease terminates in May 2027 and contains a one-time option to extend the lease term for five years. Both facility leases provide for certain limited rent abatement and annual scheduled rent increases over their respective lease terms.

The Company determined that the above facility leases were operating leases. The options to extend the lease terms for these leases were not included as part of the right-of-use asset or lease liability as it was not reasonably certain the Company would exercise those options.

In 2019, the Company entered into the Vehicle Lease Agreement, pursuant to which the Company currently leases approximately 100 vehicles. Delivery of the vehicles commenced during the first quarter of 2020. The term of each leased vehicle is 36 months and commences upon the delivery of the vehicle. The vehicles leased under this arrangement were classified as finance leases.

For the leases that commenced prior to January 1, 2019 (adoption date of ASC 842, Leases), the Company determined the present value of the lease payments using the incremental borrowing rate on that date. For all other leases, the Company used the incremental borrowing rate on the lease commencement or the lease modification date, as applicable.

Supplemental information related to the Company’s leases is as follows:


(in thousands)		December 31,
Assets	Balance Sheet Classification	2022		2021
Operating leases	Other assets, non-current	$	5,690	$	8,193
Finance leases	Property and equipment, net		2,584		1,220
Total leased assets		$	8,274	$	9,413


(in thousands)		December 31,
Liabilities	Balance Sheet Classification	2022		2021
Operating lease liabilities, current	Accrued and other current liabilities	$	3,127	$	2,751
Operating lease liabilities, non-current	Lease liabilities, non-current		3,628		6,753
Total operating lease liabilities		$	6,755	$	9,504

Finance lease liabilities, current	Accrued and other current liabilities	$	1,191	$	741
Finance lease liabilities, non-current	Lease liabilities, non-current		1,418		498
Total finance lease liabilities		$	2,609	$	1,239

Other information related to lease term and discount rate is as follows:


	December 31,
	2022		2021
Weighted-Average Remaining Lease Term
Operating leases		2.2 years		3.2 years
Finance leases		2.2 years		1.7 years
Weighted-Average Discount Rate
Operating leases		8.0%		8.0%
Finance leases		8.4%		5.8%

The components of lease expense were as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Finance lease cost
Amortization of right-of-use assets	$	1,228	$	707	$	368
Interest on lease liabilities		166		82		57
Total finance lease cost		1,394		789		425
Operating lease cost		3,154		3,066		3,126
Total lease cost	$	4,548	$	3,855	$	3,551

Supplemental cash flow information related to leases was as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	3,401	$	3,435	$	3,217
Operating cash flows from finance leases	$	155	$	81	$	53
Financing cash flows from finance leases	$	1,228	$	672	$	388
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	434	$	1,388
Finance leases	$	2,694	$	477	$	1,817

As of December 31, 2022, the maturities of the lease liabilities were as follows:


Year ending December 31, (in thousands)	Operating leases		Finance leases
2023	$	3,560	$	1,354
2024		3,014		1,026
2025		412		481
2026		292		—
2027 and thereafter		124		—
Total lease payments		7,402		2,861
Less imputed interest		(647)		(252)
Lease liabilities	$	6,755	$	2,609