Leases

12 Months Ended

Dec. 31, 2022

Leases:

The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia. In October 2020, the Company entered into a lease amendment for a 21-month committed term from October 1, 2020 to June 30, 2022 and a renewal option for a portion of the facility for a 5-year term that was reasonably certain of exercise was included in the determination of the right-of-use asset and lease liability. In November 2021, the Company entered into an agreement to extend the lease for an additional 10-year term to June 30, 2032.

In July 2022, the Company entered into an additional operating lease agreement for office space in Needham, Massachusetts, which commenced on October 1, 2022. The lease is for a 62-month term and an option to terminate one year prior to the expiry date, which was not considered in the determination of the right-of-use asset and lease liability.

The cost components of the operating leases were as follows for the years ended December 31, 2022, 2021 and 2020:


	Year Ended December 31,
	2022			2021			2020
Lease Cost
Operating lease expense	$	1,126		$	591		$	536
Variable lease expense(1)		774			751			549
Lease Term and Discount Rate
Weighted average remaining lease term (years)		8.07			10.50			6.50
Weighted average discount rate		3.97	%		3.42	%		2.45	%

(1)

Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments.

Future minimum lease payments as of December 31, 2022 were as follows:


Year ending December 31:
2023	$	1,622
2024		1,677
2025		1,745
2026		1,813
2027		1,800
2028 and thereafter		5,286
Total future minimum lease payments	$	13,943
Less: imputed interest		(2,037	)
Less: future lease incentives reasonably certain of use(1)		(1,471	)
Present value of lease liabilities	$	10,435

(1)

Lease incentives are expected to be utilized within 12 months.