Leases

6 Months Ended

Jun. 30, 2023

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.

The following table provides additional details of our facility leases presented in our condensed balance sheets (dollars in thousands):


Facilities	June 30, 2023			December 31, 2022
Right-of-use assets	$	7,053		$	9,295

Current portion of lease liabilities	4,105			3,894
Operating lease liability, net of current portion	3,752			5,855
Total	$	7,857		$	9,749

Weighted-average remaining life (years)	2.0			2.4
Weighted-average discount rate	6.8		%	6.8		%

The lease costs, which are included in operating expenses in our condensed statements of operations and comprehensive loss, were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating lease expense	$	1,064	$	1,064	$	2,128	$	2,128
Cash paid for operating lease	$	1,100	$	1,064	$	2,198	$	2,122

The following table summarizes our undiscounted cash payment obligations for our operating lease liabilities as of June 30, 2023 (in thousands):


Remainder of 2023	$	2,242
2024	4,589
2025	1,321
2026	252

Thereafter	—
Total undiscounted operating lease payments	8,404
Imputed interest expenses	(547)
Total operating lease liabilities	7,857
Less: Current portion of operating lease liability	(4,105)
Operating lease liability, net of current portion	$	3,752

In March 2023, we entered into a sub-lease Agreement (the “Sub-lease”) with Chronus Health, Inc. ("Chronus). The Sub-lease permits use by Chronus of a portion of the space in our facility in Fremont, California. We lease the facility from a different counterparty under a separate head lease that commenced in September 2008 and has been amended multiple times to add space and to extend the lease term through March 2025. We have sub-leased to Chronus approximately 21,644 square feet of the 72,500 square foot building's interior space, plus corresponding exterior support space and parking. The term of the Sub-lease shall expire on February 1, 2025.

In accordance with the Sub-lease we recognized an impairment of long-lived assets totaling $0.4 million during the three months ended March 31, 2023, which consisted primarily of impairment to the Fremont facility right-of-use asset. The Sub-lease commenced in April 2023 and we recognized $0.2 million and $0.3 million income from the Sub-lease during the three and six months ended June 30, 2023, respectively.