The Company leases real estate, primarily laboratory, office and manufacturing space. The Company’s leases have remaining terms ranging from 1 year to 10 years. Certain leases include one or more options to renew, exercisable at the Company’s sole discretion, with renewal terms that can extend the lease from one year to five years. The Company evaluated the renewal options in its leases to determine if it was reasonably certain that the renewal option would be exercised, given the Company’s current business structure, uncertainty of future growth, and the associated impact to real estate, the Company concluded that it is not reasonably certain that any renewal options would be exercised. Therefore, the operating lease assets and operating lease liabilities only contemplate the initial lease terms. All the Company’s leases qualify as operating leases.

In July 2021, the Company entered into a lease agreement for a donor collection facility in Tempe, Arizona with a lease term of 10 years, commencing in March 2022, subject to certain renewal options, which are not deemed reasonably certain. Minimum lease payments total $4,052, net of tenant improvement allowance of $770, through the lease term. At lease commencement, the Company recorded a right-of-use asset of $5,900, which consists of the lease liability of $2,327 and $3,573 of leasehold improvements that revert back to the lessor at the termination of the lease.

In August 2021, the Company entered into a lease for additional laboratory space in Waltham, Massachusetts with a lease term of 10 years, commencing in March 2022, subject to certain renewal options, which are not deemed reasonably certain. Minimum lease payments total $2,449, net of tenant improvement allowance of $767, through the lease term. At lease commencement, the Company

recorded a right-of-use asset of $2,662, which consists of the lease liability of $1,273 and $1,389 of leasehold improvements that revert back to the lessor at the termination of the lease.

The following table summarizes the presentation in the Company’s consolidated balance sheets of its operating leases (in thousands):


	June 30, 2022		December 31, 2021
Assets:
Operating lease assets	$	25,001	$	18,208

Liabilities:
Operating lease liabilities	$	7,058	$	6,610
Operating lease liabilities, net of current portion		19,516		17,958
Total operating lease liabilities	$	26,574	$	24,568

The following table summarizes the effect of lease costs in the Company’s consolidated statement of operations and comprehensive (loss) income (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs	$	1,948	$	1,277	$	3,620	$	2,317
Short-term lease costs		354		363		709		729
Variable lease costs		1,271		721		2,302		1,424
Sublease income		-		464		-		925
Total lease costs	$	3,573	$	2,825	$	6,631	$	5,395

During the three and six months ended June 30, 2022 and 2021 the Company made cash payments for operating leases of $1,332, $3,445, $245 and $1,863, respectively.

As of June 30, 2022, future payments of operating lease liabilities are as follows (in thousands):


	As of June 30, 2022
2022 (remaining 6 months)	$	4,392
2023		8,446
2024		3,387
2025		3,277
2026 and thereafter		16,199
Total future minimum lease payments	$	35,701
Less: interest		(9,127	)
Present value of operating lease liabilities	$	26,574

As of June 30, 2022, the weighted average remaining lease term was 4.75 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 10%. As of June 30, 2021, the weighted average remaining lease term was 3.25 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 10%.