Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. In calculating the present value of the lease payments, the Company has elected to utilize its incremental borrowing rate based on the original lease term and not the remaining lease term. The lease includes non-lease components (e.g., common area maintenance) that are paid separately from rent based on actual costs incurred and, therefore, were not included in the right-of-use asset and lease liability but are reflected as an expense in the period incurred.

The Company leases office space for its corporate headquarters, located in South San Francisco, CA. The lease term is through April 30, 2023 and there are no stated renewal options.

In March 2022, the Company entered into a sublease agreement for one of its leased facilities that commenced in April 2022. Under the terms of the sublease agreement, the Company will receive $0.2 million in base lease payments over the term of the sublease, which ends in April 2023. For the three and nine months ended September 30, 2022, the Company recognized sublease income of $38,000 and $0.1 million, respectively.

In August 2022, the Company entered into an agreement to terminate its license agreement for the use of laboratory facilities in South San Francisco, CA with a termination date of August 14, 2022. Under the terms of the agreement, the Company paid $0.1 million in termination fees. The termination resulted in the derecognition of the related right-of-use asset of $0.9 million and lease liability of $0.7 million, and the recognition of a $0.1 million loss on lease termination for the three months ended September 30, 2022, which is included in general and administrative operating expenses in the condensed consolidated statements of operations.

For the three and nine months ended September 30, 2022, the Company’s operating lease expense was $0.4 million and $1.5 million, respectively. For the three and nine months ended September 30, 2021, the Company’s operating lease expense was $0.5 million and $1.1 million, respectively.

The present value assumptions used in calculating the present value of the lease payments were as follows:

	September 30, 2022			December 31, 2021
Weighted-average remaining lease term	0.6 years			1.3 years
Weighted-average discount rate		5.7	%		4.8	%

The maturity of the Company’s operating lease liabilities as of September 30, 2022 were as follows (in thousands):

Year Ending December 31,	Amount
Remaining in 2022	$	192
2023		195
Total undiscounted lease payments		387
Less imputed interest		(6	)
Total operating lease liability	$	381

Supplemental cash flow information related to operating leases was as follows (in thousands):

	Nine Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities	$	1,422	$	977
Prepaid cash payment for lease liabilities		—		208
Cash paid for operating leases that were included in operating cash outflows	$	1,422	$	1,185