Leases	9 Months Ended
Sep. 30, 2021
Leases
Leases	7. Leases The Company leases approximately 170,000 square feet of office and laboratory space in two buildings in South San Francisco, California, under a non-cancelable operating lease that ends in May 2030. In July 2021, the Company terminated approximately 8,000 square feet of office space in one of the buildings and returned the space to the building’s landlord for their use. The Company determined that the termination would be accounted for as a lease modification under ASC 842. As a result of the modification, the Company reduced the value of its operating lease assets and liabilities in the condensed consolidated balance sheets, as of September 30, 2021, by $1.1 million and $3.0 million, respectively, resulting in a gain of $1.9 million which partially offset operating expenses in the condensed consolidated statements of operations. In July 2021, the Company also entered into a separate agreement under which it will sublease approximately 21,000 square feet of its South San Francisco office and laboratory space, beginning in October 2021. The sublease term will continue through September 2028. Under the terms of the sublease agreement, the Company will receive an initial monthly base rent of $0.1 million, with annual base rent increases of 3%, and the subtenant’s proportionate share of the building’s operating expenses. Beginning in October 2021, the Company will recognize the sublease income on a straight-line basis over the term of the sublease which will be reflected as a reduction in operating expenses in the condensed consolidated statements of operations.

Leases

9 Months Ended

Sep. 30, 2021

7. Leases

The Company leases approximately 170,000 square feet of office and laboratory space in two buildings in South San Francisco, California, under a non-cancelable operating lease that ends in May 2030. In July 2021, the Company terminated approximately 8,000 square feet of office space in one of the buildings and returned the space to the building’s landlord for their use. The Company determined that the termination would be accounted for as a lease modification under ASC 842. As a result of the modification, the Company reduced the value of its operating lease assets and liabilities in the condensed consolidated balance sheets, as of September 30, 2021, by $1.1 million and $3.0 million, respectively, resulting in a gain of $1.9 million which partially offset operating expenses in the condensed consolidated statements of operations.

In July 2021, the Company also entered into a separate agreement under which it will sublease approximately 21,000 square feet of its South San Francisco office and laboratory space, beginning in October 2021. The sublease term will continue through September 2028. Under the terms of the sublease agreement, the Company will receive an initial monthly base rent of $0.1 million, with annual base rent increases of 3%, and the subtenant’s proportionate share of the building’s operating expenses. Beginning in October 2021, the Company will recognize the sublease income on a straight-line basis over the term of the sublease which will be reflected as a reduction in operating expenses in the condensed consolidated statements of operations.