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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases.
The Company has an operating lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 square feet of office space in Seattle, Washington for the Company’s principal executive offices, a laboratory for research and development, and related uses. In January 2020, the Company issued an irrevocable letter of credit in the amount of $0.5 million for the security deposit in accordance with the terms of the lease. The lease term commenced on January 15, 2020 and payments of rent obligations began on February 1, 2021. The lease is scheduled to expire on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million, which is included in the base rent, and has been fully utilized as of December 31, 2021. The Company will also be responsible for the payment of additional rent to cover the Company’s share of the annual operating, tax expenses, and utilities costs for the building.
The Company has an operating lease agreement for approximately 6,272 square feet of laboratory and office space in Seattle, Washington, for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million.
On June 30, 2020, the Company terminated its lease agreement for 10,946 square feet of office space in Vancouver, Canada. The lease termination resulted in an extinguishment of the lease liability and the write-off of the related right-of-use asset. After incurring additional expenses included in the termination fee of $0.5 million, the Company recognized a loss of $0.3 million on the termination of the lease, which was recorded in general and administrative expenses in June 2020. In addition, the Company wrote-off leasehold improvements and other property and equipment associated with the lease and incurred a loss on disposal of $0.2 million in June 2020.
As of December 31, 2021, and December 31, 2020, the Company’s operating lease right-of-use assets were $10.8 million and $10.2 million, respectively. As of December 31, 2021, and December 31, 2020, the Company's finance lease right-of use-assets, included within property and equipment on the consolidated balance sheet, were $0.2 million and $0.3 million, respectively.
The components of the lease expense were as follows (in thousands):
December 31,
20212020
Finance lease cost
Amortization of right-of-use asset$49 $46 
Interest on lease liabilities12 14 
Operating lease cost2,535 2,368 
Short term lease cost40 348 
Variable lease cost2,161 321 
Total net lease cost$4,797 $3,097 
Supplemental balance sheet information related to leases is as follows:
December 31,
 20212020
Weighted average remaining lease term—finance leases2.70 years2.45 years
Weighted average remaining lease term—operating leases6.86 years7.97 years
Weighted average discount rate—finance leases6.98%7.11%
Weighted average discount rate—operating leases12.42%12.88%
Supplemental cash flow information related to leases was as follows (in thousands):
December 31,
20212020
Cash paid for amounts included in the measurement of operating lease liabilities$2,249 $460 
Cash paid for amounts included in the measurement of finance lease liabilities$63 $60 
The calculation of the present value of the operating lease payments for the Blaine lease did not include the option to extend the lease for two five-year terms.
At December 31, 2021, the future payments under the Company’s operating and finance lease liabilities were as follows (in thousands):
Finance LeaseOperating Lease
2022$64 $2,657 
202364 2,718 
20244 2,781 
20254 2,845 
20261 2,806 
Thereafter— 5,391 
Total undiscounted lease payments137 19,198 
Less: imputed interest(15)(6,336)
Total lease liabilities122 12,862 
Less: current portion(55)(1,166)
Non-current lease liabilities—December 31, 2021$67 $11,696 
Leases Leases
The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases.
The Company has an operating lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 square feet of office space in Seattle, Washington for the Company’s principal executive offices, a laboratory for research and development, and related uses. In January 2020, the Company issued an irrevocable letter of credit in the amount of $0.5 million for the security deposit in accordance with the terms of the lease. The lease term commenced on January 15, 2020 and payments of rent obligations began on February 1, 2021. The lease is scheduled to expire on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million, which is included in the base rent, and has been fully utilized as of December 31, 2021. The Company will also be responsible for the payment of additional rent to cover the Company’s share of the annual operating, tax expenses, and utilities costs for the building.
The Company has an operating lease agreement for approximately 6,272 square feet of laboratory and office space in Seattle, Washington, for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million.
On June 30, 2020, the Company terminated its lease agreement for 10,946 square feet of office space in Vancouver, Canada. The lease termination resulted in an extinguishment of the lease liability and the write-off of the related right-of-use asset. After incurring additional expenses included in the termination fee of $0.5 million, the Company recognized a loss of $0.3 million on the termination of the lease, which was recorded in general and administrative expenses in June 2020. In addition, the Company wrote-off leasehold improvements and other property and equipment associated with the lease and incurred a loss on disposal of $0.2 million in June 2020.
As of December 31, 2021, and December 31, 2020, the Company’s operating lease right-of-use assets were $10.8 million and $10.2 million, respectively. As of December 31, 2021, and December 31, 2020, the Company's finance lease right-of use-assets, included within property and equipment on the consolidated balance sheet, were $0.2 million and $0.3 million, respectively.
The components of the lease expense were as follows (in thousands):
December 31,
20212020
Finance lease cost
Amortization of right-of-use asset$49 $46 
Interest on lease liabilities12 14 
Operating lease cost2,535 2,368 
Short term lease cost40 348 
Variable lease cost2,161 321 
Total net lease cost$4,797 $3,097 
Supplemental balance sheet information related to leases is as follows:
December 31,
 20212020
Weighted average remaining lease term—finance leases2.70 years2.45 years
Weighted average remaining lease term—operating leases6.86 years7.97 years
Weighted average discount rate—finance leases6.98%7.11%
Weighted average discount rate—operating leases12.42%12.88%
Supplemental cash flow information related to leases was as follows (in thousands):
December 31,
20212020
Cash paid for amounts included in the measurement of operating lease liabilities$2,249 $460 
Cash paid for amounts included in the measurement of finance lease liabilities$63 $60 
The calculation of the present value of the operating lease payments for the Blaine lease did not include the option to extend the lease for two five-year terms.
At December 31, 2021, the future payments under the Company’s operating and finance lease liabilities were as follows (in thousands):
Finance LeaseOperating Lease
2022$64 $2,657 
202364 2,718 
20244 2,781 
20254 2,845 
20261 2,806 
Thereafter— 5,391 
Total undiscounted lease payments137 19,198 
Less: imputed interest(15)(6,336)
Total lease liabilities122 12,862 
Less: current portion(55)(1,166)
Non-current lease liabilities—December 31, 2021$67 $11,696