In January 2021, the Company entered an operating lease for laboratory and office space in Chicago, IL. The Company received access to the premises and the lease commenced in May 2021. The lease is classified as an operating lease and will continue for an initial term of 11 years, with options to extend the term for two successive five-year periods after the initial expiration date. The Company’s minimum commitment under the lease is approximately $1.7 million annually with fixed escalations of 2.5% per annum.

In January 2021, the Company entered an operating lease for laboratory and office space in Redwood City, CA. The Company received access to the premises and the lease commenced in June 2022. As of June 30, 2022, the Company recorded a right-of-use asset of $23.9 million on the Company's condensed balance sheet, including $4.7 million for a prepayment made to the landlord in 2021. The lease is classified as an operating lease and will continue for an initial term of 10.5 years, with options to extend the term for two successive five-year periods after the initial expiration date. The Company’s minimum commitment under the lease is approximately $2.6 million annually with fixed escalations of 3.0% per annum.

The components of the lease costs and supplemental cash flow information relating to the Company's leases were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Lease Costs	2022		2021		2022		2021
Operating lease costs	$	913	$	478	$	1,592	$	648
Variable lease costs		160		35		195		52
Total operating lease costs	$	1,073	$	513	$	1,787	$	700
Cash Flows
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	322	$	261	$	611	$	466


	June 30,
	2022			2021
Weighted-average remaining lease term	10.3 years			10.4 years
Weighted-average discount rate		6.9	%		5.1	%

The undiscounted future lease payments for operating leases as of June 30, 2022 were as follows (in thousands):


(in thousands)	Operating Leases
2022 (remainder)		750
2023		3,782
2024		4,374
2025		4,496
2026		4,621
2027 and thereafter		29,698
Total future minimum lease payments		47,721
Less: imputed interest		(14,619	)
Present value of operating lease liabilities		33,102
Less: current portion of lease liabilities		(2,334	)
Noncurrent portion of lease liabilities	$	30,768

In January 2022, in conjunction with the Company’s Redwood City, CA operating lease, the Company entered into a standby letter of credit (LOC) in the amount of $1.0 million to secure the lease through its expiration. The Company is required to maintain a cash balance of $1.0 million as collateral for the LOC, which has been classified in other long-term assets on the balance sheet. In exchange, $1.0 million in funds held with the landlord as a long-term deposit in other long-term assets on the balance sheets as of December 31, 2021, was released.

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, customers and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. The Company also provides indemnifications to directors and officers of the Company to the maximum extent permitted under applicable Delaware law. The maximum potential amount of future payments that the Company could be required to make under these indemnification agreements is, in many cases, unlimited. As of June 30, 2022, the Company has not incurred any material costs as a result of such indemnifications and is not currently aware of any indemnification claims.

In the normal course of business, the Company enters into various firm purchase commitments. As of June 30, 2022, these commitments totaled approximately $8.8 million, all of which are expected to be incurred in 2022.