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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has non-cancelable operating leases for manufacturing, laboratory, office and warehouse space in Maryland and a non-cancelable operating lease for laboratory and office space in California. A portion of the space under one of these leases is subleased to a third party. The California facility and the smaller-scale, non-commercial GMP manufacturing site in Maryland will be closed under the Company’s restructuring plan announced in August 2022, therefore the leases for those sites will not be renewed when they expire. The Company’s continuing leases each have one or more five-year options to renew. In December 2022, the Company amended the existing lease on its headquarters space to extend the lease term through 2035 in exchange for certain concessions from the lessor. This amendment was accounted for as a lease modification, and the right-of-use asset and lease liability were remeasured at the modification date, resulting in an increase to both balances of approximately $14.0 million. The table below presents supplemental balance sheet information related to operating leases:
| December 31,
| 2022 |  | 2021
Weighted-average remaining lease term (in years) | 11.1 |  | 5.1
Weighted-average discount rate | 12.0 | % |  | 9.7 | %
During the years ended December 31, 2022 and 2021, t he Company made cash payments for operating leases of $6.9 million and $6.7 million, respectively. As of December 31, 2022 and 2021, the Company’s ROU assets were valued at $27.3 million and $16.6 million, respectively. The components of lease cost for the years ended December 31, 2022 and 2021 were as follows (in thousands):
| December 31,
| 2022 |  | 2021
Operating lease cost | $ | 5,597 |  |  | $ | 5,613 |
Variable lease cost | 1,451 |  |  | 960 |
Sublease income | (1,076) |  |  | (814) |
Net lease cost | $ | 5,972 |  |  | $ | 5,759 |
As of December 31, 2022, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
2023 | $ | 4,999 |
2024 | 4,004 |
2025 | 5,084 |
2026 | 4,209 |
2027 | 4,927 |
Thereafter | 52,053 |
Total lease payments | 75,276 |
Less: imputed interest | (40,444) |
Total lease liabilities | $ | 34,832 |
In-licensing arrangement In January 2022, the Company entered into a non-exclusive license agreement with Synaffix B.V. (Synaffix) to develop, manufacture and commercialize up to three antibody-drug conjugate targets using Synaffix’s proprietary technology. The Company made an upfront payment to Synaffix upon contract execution. Assuming all three targets are successfully developed and commercialized, the Company would be obligated to pay up to $585.0 million for development, regulatory and sales milestones. Finally, pursuant to the terms of this license agreement, upon commencement of commercial sales of any products developed from these targets, the Company would be required to pay Synaffix tiered royalties in the low‑single digit percentages on net sales of the respective products. The Company may terminate this agreement at any time with 30 days’ notice to Synaffix. Amounts paid to Synaffix under this agreement are recorded as research and development expense in the consolidated statement of operations. During the year ended December 31, 2022, the Company incurred $1.0 million under this agreement. Securities Litigation On September 13, 2019, a securities class action complaint was filed in the U.S. District Court for the District of Maryland (District Court) by Todd Hill naming the Company, its Chief Executive Officer, Dr. Koenig, and its Chief Financial Officer, Mr. Karrels, as defendants for allegedly making false and materially misleading statements regarding the Company’s SOPHIA trial. On August 17, 2020, the Employees’ Retirement System of the City of Baton Rouge and Parish of East Baton Rouge was appointed as Lead Plaintiff, and on October 16, 2020, the Lead Plaintiff filed an amended complaint. The amended complaint asserted a putative class period stemming from February 6, 2019 to June 4, 2019. The Company filed a Motion to Dismiss on November 30, 2020. On September 29, 2021, the District Court issued an Order dismissing the case, with prejudice. On October 28, 2021 the Lead Plaintiff filed a Notice of Appeal in the Fourth Circuit. The Company did not accrue any liability associated with this action as of December 31, 2022. The 4th Circuit affirmed the District Court’s dismissal in a decision published on March 2, 2023.

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