As of June 30, 2024, the Company had operating leases consisting of approximately 110,000 square feet of manufacturing, laboratory and office space in San Diego, California, including 87,000 square feet under a lease that expires on December 31, 2029, which contains a clinical manufacturing facility adjacent to office and laboratory space. The lease agreements include two options to extend the term for a period of 5 years each.

In October 2021, the Company entered into a sublease agreement for a facility in San Diego, California consisting of approximately 23,000 square feet to be used for research and administrative activities. The lease term commenced in March 2022 and will expire on December 31, 2025.

During the six months ended June 30, 2024 and 2023, the Company recognized $2.9 million of operating lease expense for each of the periods. During the six months ended June 30, 2024, the Company paid $3.1 million for its operating leases. As of June 30, 2024, the weighted-average remaining lease term and weighted-average discount rate for operating leases were 5.2 years and 8.9%, respectively.

As of June 30, 2024, maturities of lease liabilities were as follows (in thousands):


Year ending December 31,
2024 (remaining six months)	$	3,121
2025		6,374
2026		5,107
2027		5,260
2028		5,418
Thereafter		5,581
Total future lease payments		30,861
Imputed interest		(6,004	)
Total lease liability balance		24,857
Less current portion of lease liability		6,039
Lease liability, net of current portion	$	18,818

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, contract research organizations, business partners and other parties with respect to certain matters including, but not limited to, losses arising from breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and certain of its executive officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. The Company has not incurred any material costs as a result of such indemnifications and is not currently aware of any indemnification claims.

In the ordinary course of business, the Company may face claims brought by third parties against the Company. The Company believes that there are currently no lawsuits, threats of litigation, or asserted or unasserted claims pending that could, individually or in the aggregate, have a material adverse effect on the Company’s results of operations or financial condition.