Leases

3 Months Ended

Mar. 31, 2023

7. Leases

The Company’s leases relate primarily to office and laboratory facilities located in La Jolla and previously in South San Francisco, California. The Company’s lease of office space in South San Francisco expired in February 2023 and the Company did not renew that lease. The Company’s lease of laboratory space in La Jolla expires in 2025, and the Company's leases of office space in La Jolla expire in 2027. The terms of the Company’s non-cancelable operating lease arrangements typically contain fixed lease payment which increases over the term of the lease at fixed rates, and include rent holidays and provide for additional renewal periods. Lease expense is recognized over the term of the lease on a straight-line basis. All of the Company’s leases are classified as operating leases. The Company has determined that periods covered by options to extend the Company’s leases are excluded from the lease term as the Company is not reasonably certain the Company will exercise such options. Operating lease expense, including expenses related to short-term leases, was $0.1 million for each of the three months ended March 31, 2023 and 2022.

The Company records its right-of-use (ROU) assets within other assets (long term) and its operating lease liabilities within other current and long-term liabilities.

Additional information related to the Company’s leases as of and for the three months ended March 31, 2023, is as follows (in thousands, except lease term and discount rate):


	March 31, 2023
Balance sheet information
Right-of-use assets	$	1,114
Lease liabilities, current	$	404
Lease liabilities, non-current		719
Total lease liabilities	$	1,123
Other information
Weighted average remaining lease term	2.89 years
Weighted average discount rate		8.25	%
Supplemental cash flow information
Operating cash flows from operating leases	$	167
Right-of-use assets obtained in exchange for lease obligations	$	—

Maturities of lease liabilities as of March 31, 2023 were as follows (in thousands):


Year ending December 31,
2023 (remaining nine months)		360
2024		492
2025		219
2026		169
2027		28
Total undiscounted lease payments		1,268
Less: imputed interest		(145	)
Total lease liabilities	$	1,123

As of March 31, 2023, the Company does not have any leases that have not yet commenced that create significant rights and obligations.