The Company leases real estate, primarily laboratory, office and manufacturing space. The Company’s leases have remaining terms ranging from approximately two to ten 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 approximately 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 April 2022, the Company entered into a lease for additional laboratory and office space in Spring House, Pennsylvania, with a lease term of ten years and a renewal option, subject to certain conditions, for an additional five-year term. The undiscounted minimum lease payments are $2,980, net of a tenant improvement allowance of $1,223, over the original ten-year term. The lease commenced in April 2023, and accordingly as of March 31, 2023, the Company has not recorded a right-of-use asset or a lease liability with respect thereto.

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


	March 31, 2023		December 31, 2022
Assets:
Operating lease assets	$	108,914	$	110,984

Liabilities:
Operating lease liabilities	$	4,784	$	3,601
Operating lease liabilities, net of current portion		106,692		107,942
Total operating lease liabilities	$	111,476	$	111,543

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


	Three Months Ended March 31,
	2023		2022
Operating lease costs	$	5,410	$	1,672
Short-term lease costs		368		355
Variable lease costs		1,763		1,032
Total lease costs	$	7,541	$	3,059

During the three months ended March 31, 2023 and 2022, the Company made cash payments for operating leases of $3,413 and $2,113, respectively.

As of March 31, 2023, future payments of operating lease liabilities are as follows (in thousands):


	As of March 31, 2023
2023 (remaining 9 months)	$	13,403
2024	$	19,055
2025	$	21,164
2026	$	21,754
2027 and thereafter	$	108,383
Total future minimum lease payments	$	183,759
Less: interest		(72,283	)
Present value of operating lease liabilities	$	111,476

As of March 31, 2023, the weighted average remaining lease term was 8.68 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 13%. As of March 31, 2022, the weighted average remaining lease term was 4.98 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 10%.