On May 25, 2018, the Company entered into an office lease (the “Prior Lease”) with Kilroy Realty, L.P. The Lease was for approximately 7,149 rentable square feet of space located at 12340 El Camino Real, Suite 250, San Diego, California 92130 (the “Old Premises”).

The Prior Lease commenced on November 1, 2018 and expired on January 31, 2022 (the “Prior Lease Term”). Monthly base rent payments due under the Prior Lease for the Old Premises were $27,000, subject to annual increases of 3.0% during the Prior Lease Term. Under the Prior Lease, the Company was responsible for certain charges for common area maintenance and other costs, including electricity and utility expenses, and the Prior Lease provided for abatement of rent during certain periods and escalating rent payments throughout the Prior Lease Term. Rent expense was recorded on a straight-line basis over the life of the Prior Lease and the difference between the rent expense and rent paid was recorded as deferred rent.

On November 15, 2021, the Company entered into an Office Lease (the “Office Lease”) with One Pacific Heights. LLC. The Office Lease is for approximately 7,940 rentable square feet of space located at 9920 Pacific Heights Blvd, Suite 350, San Diego, California 92121 (the “Premises”). The Premises are now the Company’s corporate headquarters.

The Office Lease commenced on March 1, 2022 and will expire on July 31, 2027 (the “Term”). Monthly base rent payments due under the Office Lease for the Premises are $28,187, subject to annual increases of 3.0% during the Term. Under the Office Lease, the Company will be responsible for certain charges for common area maintenance and other costs, including utility expenses and the Office Lease provides for abatement of rent during certain periods and escalating rent payments throughout the Term. Rent expense will be recorded on a straight-line basis over the life of the Office Lease and the difference between the rent expense and rent paid will be recorded as deferred rent.

The Office Lease provides the Company with an option to extend the term of the Office Lease for a period of five years beyond the Term. If the option is exercised, the renewal term will be upon the same terms and conditions as the original Term, except that the base rent will be equal to the prevailing market rate as determined pursuant to the terms of the Office Lease.

As of March 31, 2022, the weighted-average remaining lease term was 5.33 years and the weighted-average discount rate was 3.00%.

Rent expense was $81,000 and $77,000 for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022:
Remainder of 2022		113
2023		347
2024		357
2025		368
2026 and beyond		606
Total minimum lease payments	$	1,791
Less: amount representing interest	$	(151	)
Total lease liability obligations	$	1,640