Leases

9 Months Ended

Sep. 30, 2021

LEASES

All of our leases are operating leases and each contain customary rent escalation clauses. Certain of the leases have both lease and non-lease components. We have elected to account for each separate lease component and the non-lease components associated with that lease component as a single lease component for all classes of underlying assets.

During May 2021, we entered into an amendment to the lease for our Fremont, California facility that extended the term of the lease to March 2025. The office space consists of 72,500 square feet with the lease terminating in September 2025. We increased the right-of-use asset and lease liability by $11.9 million for the Fremont lease upon commencement of the amendment.

During April 2021 and May 2021, we recorded right-of-use operating lease assets for a new facility in Waltham, Massachusetts under a lease agreement entered into during December 2020 with lease commencement dates during April and May 2021. The office space consists of 12,864 square feet with the lease terminating in June 2026. We have an option to extend the lease term for one additional five year period. This option to extend the lease term has not been included in the calculation since currently the exercise of the option is uncertain and therefore deemed not probable. We recorded a $1.6 million right-of-use asset and lease liability for the Waltham lease upon commencement of the lease.

The following table provides additional details of our facility leases presented in the condensed balance sheet as of September 30, 2021 (dollars in thousands):


Facilities
Right-of-use assets	$	13,580

Current portion of lease liabilities	3,391
Operating lease liability, net of current portion	10,669
Total	$	14,060

Weighted-average remaining life (years)	3.70
Weighted-average discount rate	6.86		%

Lease costs, which are included in operating expenses in our statements of operations, were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease expense	$	1,096	$	648	$	2,606	$	1,944
Cash paid for operating leases	$	829	$	767	$	2,383	$	2,288

The following table summarizes our undiscounted cash payment obligations for our operating lease liabilities as of September 30, 2021 (in thousands):


Remainder of 2021	$	1,056
2022	4,292
2023	4,440
2024	4,589
2025	1,321
Thereafter	252
Total undiscounted operating lease payments	15,950
Imputed interest expenses	(1,890)
Total operating lease liabilities	14,060
Less: Current portion of operating lease liability	(3,391)
Operating lease liability, net of current portion	$	10,669