Leases

9 Months Ended

Sep. 30, 2021

The Company leases office, manufacturing, distribution and laboratory facilities in Emeryville, California under multiple operating leases. During the third quarter of 2021 the company extended the term for its leases related to the facilities in Emeryville and these leases will now expire in 2029. Also during the third quarter of 2021, the company entered into a seven year lease of space for office and laboratory operations in Lexington, Massachusetts, which commenced on July 1, 2021. Commitments under this lease total approximately $4.0 million.

The Company also leases two facilities in Shanghai, China for office and laboratory facilities under operating lease agreements that were entered into in July 2020.

Future payments associated with the Company’s operating lease liabilities as of September 30, 2021 are as follows (in thousands):


	Operating leases

Undiscounted lease payments for the year ending December 31,
Remainder of 2021	$	1,060
2022	4,202
2023	4,275
2024	4,355
2025	4,486
Thereafter	16,843
Total undiscounted lease payments	35,221
Less: implied interest	(5,796)
Less: tenant improvement allowances receivable	(1,426)
Present value of operating lease payments	27,999
Less: current portion	(2,909)
Total long-term operating lease liabilities	$	25,090

Rent expense for the three and nine months ended September 30, 2021 was $1.0 million and $2.7 million, respectively. Rent expense for the three and nine months ended September 30, 2020 was $0.6 million and $1.8 million, respectively. Under the terms of the lease agreements, the Company is also responsible for certain variable lease payments that are not included in the measurement of the lease liability. Variable lease payments for operating leases were $0.6 million and $1.7 million for the three and nine months ended September 30, 2021, respectively, including non-lease components such as common area maintenance fees. Variable lease payments for operating leases were $0.4 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, including non-lease components such as common area maintenance fees.

The following information presents certain quantitative information related to our lease arrangements (in thousands):


	Nine months ended September 30, 2021

Right-of-use assets obtained in exchange for new operating lease liabilities - New leases	$	3,348
Right-of-use assets obtained in exchange for new operating lease liabilities - Modification of existing leases	$	8,320
Cash paid for amounts included in the measurement of lease liabilities	$	2,628

The following summarizes additional information related to operating leases:


	September 30, 2021

Weighted-average remaining lease term (years)	7.76
Weighted-average discount rate	4.67	%

The Company also enters into leasing transactions in which the Company is the lessor, which to date have been classified as sales-type leases. See Note 4 of these condensed consolidated financial statements for the related lease disclosures.