In May 2022, we entered into a lease (Lease) with San Diego Creekside, LLC (Landlord), as lessor, pursuant to which we agreed to lease from Landlord approximately 23,696 rentable square feet (subject to increase pursuant to the terms of the Lease) of office and laboratory space. The term of the lease (the Lease Term) commenced on March 20, 2023 (the Lease Commencement Date) and will continue for 124 months. We have an option to extend the Lease Term for five years. Base rent during such extension period would be at the fair market rent for the Premises. Under the terms of the Lease, the base rent during the first 12 months of the Lease Term will be $5.75 per square foot of rentable area per month, subject to certain upward adjustments of approximately 3.0% annually. As of March 31, 2023, we have incurred $4.8 million in tenant improvement costs, and these costs are included in property and equipment, net on our condensed consolidated balance sheets. We are entitled to an allowance of up to $5.5 million for tenant improvements of which as of March 31, 2023, we received $4.5 million from the Landlord. The Lease also includes an option to utilize an additional allowance of up to $0.6 million, which, if used by us, would be repaid by us as additional monthly base rent, amortized at eight percent (8.0%) per annum during the Lease Term. We provided a $0.7 million security deposit in the form of a letter of credit which is included in restricted cash on our condensed consolidated balance sheet as of March 31, 2023.

Our operating lease for our previous corporate headquarters is subject to base lease payments, additional charges for common area maintenance and other costs and terminates in May 2023.

Future minimum payments under the facility leases and reconciliation to the operating lease liability as of March 31, 2023 were as follows (in thousands):


	Operating Leases
2023	$	1,031
2024		1,976
2025		1,909
2026		1,777
2027		1,831
2028 and thereafter		11,103
Less: Amount representing interest		(6,680	)
Present value of lease payments		12,947
Less: Current portion of operating lease liability		(381	)
Less: Tenant improvement allowance not yet received		(650	)
Long-term operating lease liability, net of current portion	$	11,916

For each of the three months ended March 31, 2023 and 2022, we recorded an operating lease expense of $0.7 million and $0.2 million, respectively. As of March 31, 2023, the weighted-average remaining lease term was 9.8 years and the weighted average discount rate was 8.8%.

In April 2022, we entered into a master financing lease agreement to lease various research and development and information technology equipment over a 48-month term. Future minimum payments under the financing lease and reconciliation to the financing lease liability as of March 31, 2023 were as follows (in thousands):


	Financing Leases
2023	$	422
2024		563
2025		563
2026		606
2027		185
Less: Amount representing interest		(349	)
Present value of lease payments		1,990
Less: Current portion of financing lease liability		(420	)
Long-term financing lease liability, net of current portion	$	1,570

As of March 31, 2023, the weighted-average remaining lease term was 3.7 years and the weighted-average discount rate was 8.2%. We provided a $2.4 million deposit to be held as collateral for the leased equipment, and this deposit is included in restricted cash as of March 31, 2023.