In June 2015, the Company executed a noncancelable operating lease for approximately 13,000 square feet of laboratory, research and development, and office space in Cranbury, New Jersey. This location operated as the Company's headquarters until March 2023.

In June 2017, the Company obtained an additional noncancelable operating lease for approximately 6,000 square feet of laboratory space in the same corporate center. As a result of the additional space, both leases were set to expire in June 2022. In January 2022, the Company signed a lease extension for both leases for up to one additional year through June 2023, with the option to terminate upon 120 days of written notice, with an increase in base rent as per the lease extension.

In August 2018, the Company executed two noncancelable operating leases. One lease for approximately 6,000 square feet for vivarium, laboratory and general office space in South Brunswick, New Jersey. The lease was set to expire in July 2022. In January 2022, the Company signed a lease extension for up to one additional year through July 2023, with the option to terminate upon 120 days of written notice, with an increase in base rent as per the lease extension. The second lease is for office space in Lexington, Massachusetts, that expires August 2023, with an option to renew for a one-time, three-year extension.

In January 2021, the Company signed a lease for 50,581 square feet of office and laboratory space at One Research Way in Princeton, New Jersey. That lease term extends through 2032, has a five-year extension option, and replaced the Company’s two existing facilities as the Company’s headquarters in March 2023. Payment under this lease will total $19,889 through May 2032. The Company received a lease incentive of $4,046 from the lessor for a buildout of laboratory, vivarium, and office space, to be reimbursed to the Company in 2022 and 2023. Management estimated the timing and amounts of reimbursements and included them as a reduction of lease payments when initially measuring the lease liability and right-of-use asset upon commencement. Since the inception date of the lease, $2,969 reimbursements were received. For the six months ended June 30, 2023, no reimbursements were received.

The components of lease cost for the three and six months ended June 30, 2023, and 2022, are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Operating lease cost	$	596	$	530	$	1,193	$	1,042
Variable lease cost		311		198		630		395
Total lease cost	$	907	$	728	$	1,823	$	1,437

Amounts reported in the balance sheet for leases where the Company is the lessee as of June 30, 2023, and December 31, 2022, are as follows:


Operating Leases (in thousands, except lease term and discount rate data):	June 30, 2023			December 31, 2022
Right-of-use assets, operating leases	$	8,729		$	9,539

Operating lease liabilities, current	$	18		$	528
Operating lease liabilities, non-current		12,960			13,448
Total operating lease liabilities	$	12,978		$	13,976

Weighted-average remaining lease term (years)		8.90			9.08
Weighted-average discount rate		5.75	%		5.75	%

Other information related to leases for the six months ended June 30, 2023 and 2022, respectively, as follows:


	Six Months Ended June 30,
(in thousands)	2023		2022
Net cash paid (received) for amounts included in the measurement of lease liabilities	$	1,382	$	(750	)
Leased assets obtained in exchange for new or modified operating lease liabilities		10		—

Future minimum lease payments, net of reimbursements, remaining as of June 30, 2023, under operating leases by fiscal year were as follows:


Fiscal year	(in thousands)
2023	$	(175	)
2024		1,814
2025		1,869
2026		1,925
2027		1,983
Thereafter		9,494
Total minimum lease payments	$	16,910
Less: Amounts representing imputed interest		(3,932	)
Present value of lease liabilities	$	12,978

Rent expense recorded during the three months ended June 30, 2023 and 2022 was $596 and $530, respectively. Rent expense recorded during the six months ended June 30, 2023 and 2022 was $1,193 and $1,042, respectively.

The Company currently subleases the office space at 420 Bedford Street in Lexington, Massachusetts to another company. This sublease agreement expires in August, 2023. Sublease income recorded during the three months ended June 30, 2023 and 2022 was $18 and $26, respectively. Sublease income recorded during the six months ended June 30, 2023 and 2022 was $46 and $55, respectively.

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when future expenditures are probable and such expenditures can be reasonably estimated.