The Company has a non-cancelable facility lease agreement, or the Lease, for office and laboratory facilities in South San Francisco, California, with a remaining lease term of 1.6 years, through January 2024, and a two-year renewal option prior to expiration. The renewal option to extend the Lease was not considered in the determination of the right-of-use asset or the lease liability for the Lease as the Company did not consider it reasonably certain that it would exercise any such option. The Lease provides that the Company is obligated to pay certain variable costs, including taxes and operating expenses. The Lease is classified as an operating lease. From inception, the Company has measured the present value of its lease liability using an estimated incremental borrowing rate of 9%.

On March 8, 2021, the Company amended its lease to reduce its rentable area from approximately 54,000 square feet to approximately 34,000 square feet. The related reduction in rent was effective January 1, 2021. In connection with the amendment, the Company also reduced its existing letter of credit from $440,000 to $270,000 as a security deposit to the lease. Subsequent to the amendment, which was determined to be a modification of the lease, the Company remeasured the present value of its lease liability using an estimated incremental borrowing rate of 7.5%. The Company recognized a gain of $0.4 million, which is included in interest and other income (expense), net in its unaudited condensed consolidated statement of operations for the six months ended June 30, 2021, which represents the difference between the reduced lease liability and the reduction in the operating lease right of use asset.

The components of net operating lease costs included in the condensed consolidated statement of operations for the three and six months ended June 30, 2022 and 2021, were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Operating Lease Costs:	2022		2021		2022		2021
Straight-line rent expense related to facility operating lease	$	325	$	326	$	651	$	810
Variable rent expense related to facility operating lease		293		249		522		493
Net operating lease costs	$	618	$	575	$	1,173	$	1,303

Cash paid for amounts included in the measurement of the lease liabilities for both the three months ended June 30, 2022 and 2021, was $0.4 million and was included in net cash used in operating activities in the Company’s unaudited condensed consolidated statements of cash flows. Cash paid for amounts included in the measurement of the lease liabilities for the six months ended June 30, 2022 and 2021, was $0.8 million and $0.7 million, respectively, and was included in net cash used in operating activities in the Company’s unaudited condensed consolidated statements of cash flows.

The balance sheet classification of the Company’s operating lease liability was as follows (in thousands):



Operating Lease Liability:	June 30, 2022		December 31, 2021
Current portion included in accrued and other liabilities	$	1,451	$	1,374
Noncurrent operating lease liability		917		1,666
Total operating lease liability	$	2,368	$	3,040

The maturities of the Company’s lease liability as of June 30, 2022, was as follows (in thousands):


Year ending December 31:
2022 (excluding the six months ended June 30, 2022)	$	775
2023		1,593
2024		136
Total lease payments		2,504
Less: interest		(136	)
Present value of lease liability	$	2,368