On November 19, 2021, the Company exercised its option to extend the lease term of its existing office and laboratory space at 500 Arsenal Street for an additional 5 years through September 1, 2027. The Company accounted for the extension as a modification and re-assessed the classification of the lease as an operating lease. The total remeasurement of the lease resulted in an increase in the

right-of-use asset and lease liability of $15,076. The updated minimum lease payments related to the 500 Arsenal Street lease as a result of the extension totaled $20,342.

On May 12, 2022, the Company entered into a new lease agreement with its existing landlord for laboratory and office space in Watertown, Massachusetts adjacent to its 400 Talcott Avenue premises in order to accommodate its growing headcount. The new lab and office space will be located at Arsenal on the Charles in Watertown, Massachusetts at a to-be-constructed facility. The Company will rent approximately seventy-three thousand square feet of space over a ten-year period. The Company expects to gain access to the space to perform tenant improvements beginning in October 2023. The lease also contains a tenant improvement allowance of $15,194. The estimated minimum lease payments as a result of the new lease total $76,470. The Company will account for the lease as a right-of-use asset and lease liability upon obtaining access to the building. During the three months ended June 30, 2022, the Company paid a lease deposit of $560 which was classified as a long-term asset on the consolidated balance sheet. In addition, during the three months ended June 30, 2022, the Company established a money market account collateralizing a letter of credit issued as a security deposit of $3,360 which is classified as long-term restricted cash on the consolidated balance sheet.

In conjunction with the new lease agreement at Arsenal on the Charles, the Company amended its 500 Arsenal Street lease to shorten the term of the lease from September 2027 to the date when the Arsenal on the Charles facility is completed and ready for the Company's occupancy. The construction of the Arsenal on the Charles facility is being conducted by the landlord and it is expected that the facility will be ready for the Company's tenant improvement buildout in October 2023. As the construction of the facility and the timing of completion is not in the control of the Company, the Company will remeasure the lease term for financial accounting purposes at the time the contingency regarding occupancy lapses.

During the three months ended June 30, 2022, the Company also amended its existing lease at 400 Talcott Avenue, which is part of the Arsenal on the Charles campus, to add approximately twenty thousand square feet of additional office space and extend the lease term through May 2034 to coincide with the lease end date of the to-be-constructed facility at Arsenal on the Charles. The amended lease also includes a tenant improvement allowance from the landlord of up to $2,574. The lease amendment was accounted for as a modification during the three months ended June 30, 2022 and resulted in an increase in the right-of-use asset and liability of $7,425 to reflect occupancy in the first-floor space and the extension of the lease term through May 2034. The Company obtained access to the third-floor space in July 2022 at which point, the Company will capitalize a right-of-use asset and liability of approximately $749.

Future annual minimum lease payments under the Company's leases as of June 30, 2022, including the Arsenal on the Charles to be constructed facility, are as follows:


Years ended September 30,	(in thousands)
2023		4,738
2024		6,690
2025		12,003
2026		12,363
2027		12,396
Thereafter		65,726
Total future minimum lease payments	$	113,916