In July 2016, the Company entered into an operating lease for its facility in Boston, Massachusetts. Under the terms of the lease agreement, rent payments commenced in June 2017 with base rent in the first lease year of $2.1 million, subject to annual increases of 3.0% over the lease term through June 2027. The Company is also obligated to pay its ratable portion of operating expenses and taxes. The Company has the right to extend the lease for one additional five-year period at a market rental rate as determined by the landlord and agreed to by the Company. The lease is secured by a letter of credit in the amount of $0.5 million. In conjunction with the lease, the landlord provided the Company with a $5.3 million tenant improvement allowance.

In September 2019, the Company entered into an operating lease under which the Company leased additional office space from a third-party tenant under a sublease agreement at its existing facility. Under the terms of the lease agreement, rent payments commenced in December 2019 with base rent in the first lease year of $1.2 million, subject to annual rent escalation over the lease term through January 2027. The sublease is secured by a letter of credit in the amount of $0.4 million.

In January 2020, the Company entered into a sublease agreement to sublease a portion of its existing office and laboratory space to a third-party. The lease term commenced in March 2020 with an original term of 24 months. Annual base rent was $1.1 million for each year during the sublease term. The sublessee is obligated to pay its ratable portion of operating expenses during the sublease term. Subject to the Company’s consent, the sublease provided the sublessee one option to extend for up to one year, subject to a 3.0% rent increase. In May 2021, the sublessee exercised its right to extend the sublease term through October 31, 2022. Pursuant to the extension, base rent is $1.7 million for each year during the extension. The sublessee provided a security deposit of $0.2 million in cash which is presented as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Payments received under the sublease are recorded as a reduction to rent expense in the condensed consolidated statements of operations and comprehensive (loss) income.

In January 2022, the Company entered into a sublease agreement to sublease a portion of its existing office space to a third-party. The lease term commenced in February 2022 with an original term of six months. Base rent over the term will total $0.5 million. The sublease grants the sublessee the right to extend for two terms of three months each at the same base rent per month. The sublessee prepaid the last month’s rent of $0.1 million, which is presented as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheet. In June 2022, the subtenant exercised its first right to extend the sublease term. The extended sublease term expires in October 2022. Payments received under the sublease are recorded as a reduction to rent expense in the condensed consolidated statements of operations and comprehensive (loss) income.

In July 2020, the Company entered into a financing transaction with a third-party leasing company. Pursuant to the transaction, the Company transferred title and interest in certain laboratory equipment to the third party in exchange for a one-time cash payment of $0.5 million and agreed to lease the laboratory equipment back from the third party for $0.2 million per year for 2.5 years. The Company concluded the lease was a capital lease under ASC 840 and a finance lease after the Company’s adoption of ASC 842.

The components of lease cost for the six months ended June 30, 2022 were as follows (in thousands):


Operating lease cost	$	1,458
Variable lease cost		391
Short-term lease cost		8
Finance lease cost:
Amortization of right-of-use assets		101
Interest expense on lease liabilities		9
Sublease income		(1,358	)
Total lease cost	$	609

Supplemental cash flow information related to operating leases for the six months ended June 30, 2022 were as follow (in thousands):


Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases			1,791
Operating cash flows from finance leases			9
Financing cash flows from finance leases			104

Future minimum lease payments under the Company’s noncancelable leases as of June 30, 2022 were as follows (in thousands):


	Operating Leases			Finance Leases
2022 (excluding the six months ended June 30, 2022)	$	1,825		$	113
2023		3,705			19
2024		3,796			—
2025		3,889			—
2026		3,984			—
2027		1,350			—
Total lease payments		18,549			132
Present value adjustment		(3,299	)		(5	)
Present value of lease payments	$	15,250		$	127

As of June 30, 2022, the Company’s operating leases had a weighted-average remaining lease term of 4.8 years and weighted average incremental borrowing rate of 8.7%. As of June 30, 2022, the Company’s finance lease had a weighted average remaining lease term of 0.6 years and weighted average incremental borrowing rate of 10.0%.