Leases

12 Months Ended

Dec. 31, 2021

The Company leases separate office and laboratory spaces in Vancouver, British Columbia, with terms of each lease expiring in February 2022. On January 25, 2019, the Company entered into a lease for a new building in Vancouver to serve as the Company’s future headquarters, including both office and laboratory space. This lease commenced for accounting purposes in May 2021 and construction of leasehold improvements was in progress as of December 31, 2021 and was completed subsequent to the year-end. This lease has an initial term of ten years, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington with lease terms expiring in May 2027. None of the optional extension periods have been included in the determination of the right-of-use assets or the lease liabilities for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options. The Company also leases office equipment under capital lease agreements.

The balance sheet classification of the Company’s lease liabilities was as follows:


	December 31, 2021		December 31, 2020
Operating lease liabilities:
Current portion	$	1,310	$	2,710
Long-term portion	30,923		5,812
Total operating lease liabilities	32,233		$	8,522
Finance lease liabilities:
Current portion included in other current liabilities	22		17
Long-term portion included in other long-term liabilities	100		122
Total finance lease liabilities	122		139
Total lease liabilities	$	32,355	$	8,661

Cash paid for amounts included in the measurement of operating lease liabilities for the year ended December 31, 2021 was $3,186 and was included in net cash used in operating activities in the consolidated statement of cash flows.

As of December 31, 2021, the maturities of the Company’s operating lease liabilities were as follows:


	Operating leases
Within 1 year	$	2,248
1 to 2 years	5,181
2 to 3 years	5,117
3 to 4 years	5,262
4 to 5 years	5,246
Thereafter	15,545
Total operating lease payments	38,599
Less:
Imputed interest	(6,366)
Operating lease liabilities	$	32,233

As of December 31, 2021, the weighted average remaining lease term is 8.3 years and the discount rate used to determine the operating lease liability was 4.8% for leases in Canadian dollars and 2.8% for leases in U.S. dollars.

During the year ended December 31, 2021, the Company incurred total operating lease expenses of $5,658 (2020 - $3,595), which included lease expenses associated with fixed lease payments of $5,323 (2020 - $3,156), and variable payments associated with common area maintenance and similar expenses of $335 (2020 - $439).

During the year ended December 31, 2021, the Company did not recognize any impairment losses on its right-of-use assets (2020: $667).