Leases

12 Months Ended

Dec. 31, 2022

7. Leases

The Company leases certain office space, laboratory facilities, and equipment. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional three to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options. The Company performed evaluations of its contracts and determined it has both operating and finance leases. Variable lease expense for these leases primarily consists of common area maintenance and other operating costs.

In April 2019, the Company entered into a lease agreement (the “Las Cimas Lease”) for its corporate headquarters and laboratory space located in Austin, Texas. The Las Cimas Lease includes approximately 30,000 square feet and commenced on April 30, 2019, with an expiration on April 30, 2028. The Company posted a customary letter of credit in the amount of $1.5 million as security, which is subject to automatic reductions per the terms of the Las Cimas Lease. A tenant allowance of up to $1.0 million was provided by the lessor and fully reimbursed to the Company.

The following table summarizes the Company’s recognition of its operating and finance leases (in thousands):


		December 31,
	Classification	2022		2021
Assets
Operating	Operating lease right-of-use assets	$	3,430	$	3,806
Finance	Other non-current assets		597		798
Total leased assets			4,027		4,604

Leases
Current
Operating	Operating lease liabilities		625		436
Finance	Accrued and other current liabilities		16		418
Non-current
Operating	Non-current operating lease liabilities		4,004		4,608
Finance	Other non-current liabilities		—		16
Total lease liabilities		$	4,645	$	5,478

The following table summarizes the weighted-average remaining lease term and discount rates for the Company’s operating and finance leases:


	December 31,
	2022			2021
Lease term (years)
Operating leases		5.3			6.3
Finance leases		0.6			0.5

Discount rate
Operating leases		10.6	%		10.7	%
Finance leases		10.2	%		6.7	%

The following table summarizes the lease costs pertaining to the Company’s operating leases (in thousands):


	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	910	$	991	$	1,258
Variable lease cost		472		519		665
Total lease cost	$	1,382	$	1,510	$	1,923

Cash paid for amounts included in the measurement of operating lease liabilities during the years ended December 31, 2022 and 2021 was $0.9 million and $1.1 million, respectively, and was included within net cash used in operating activities in the cash flows.

The maturities of the Company’s operating and finance lease liabilities as of December 31, 2022 were as follows (in thousands):


	Operating Leases			Finance Leases
2023	$	1,078		$	16
2024		1,103			—
2025		1,129			—
2026		1,163			—
2027		1,198			—
Thereafter		403			—
Total lease payments		6,074			16
Less:
Imputed interest		(1,445	)		—
Total	$	4,629		$	16