The Company leases its headquarters with its main offices and laboratory facilities in South San Francisco under a sublease agreement that ends in April 2022. Rent expense is recognized on a straight-line basis over the term of the operating lease. Any difference between cash payments and rent expense is recorded as deferred rent.

In June 2021, the Company entered into a lease agreement for space in South San Francisco, California. The lease has an initial term of seven years, beginning on the lease commencement date, with an option to extend the lease for an additional period of five years. The target lease commencement date is in March 2022. Under the terms of the lease, the Company is required to maintain a letter of credit for the benefit of the landlord in the amount of $0.2 million, commencing on the effective date of the agreement until the expiration of the lease. The deposit related to the letter of credit is included within the restricted cash on the consolidated balance sheet.

The following are minimum future rental payments owed under the Company’s operating leases as of December 31, 2021:

	(In thousands)
2022	$	2,425
2023		2,665
2024		2,738
2025		2,814
2026		2,891
Thereafter		6,792
Total	$	20,325

Rent expense for the years ended December 31, 2021 and 2020 was $1.4 million and $1.5 million, respectively.

In 2018, the Company entered into a capital lease arrangement to finance the purchase of equipment. This capital lease arrangement expired in September 2021 and the outstanding amounts under the agreements were secured by liens on the related equipment. There are no remaining payments due as of December 31, 2021.