The Company leases office and laboratory space in Redwood City, California, and Boston, Massachusetts.

In 2018, Adicet Therapeutics executed a non-cancelable lease agreement, as amended in 2022, pursuant to which the Company leases office and laboratory facility at 1000 Bridge Parkway and a portion of 1200 Bridge Parkway in Redwood City, California (the Redwood City Lease).

On January 9, 2023, Adicet Therapeutics entered into a third lease amendment with Westport Office Park, LLC (the Third Amendment). The Third Amendment further amends the Redwood City Lease and increases the tenant improvement allowance as of January 1, 2023 by an additional $3.0 million. The Company expects to utilize the full allowance for the continued buildout of office and laboratory space at 1000 Bridge Parkway. Per the terms of this amendment, this additional allowance will be repaid through equal monthly payments of principal amortization and interest on a monthly basis over the term of the lease at an interest rate of eight percent (8%) per annum. The Company received the allowance on February 21, 2023.

In 2018, the Company entered into a lease agreement, as amended in 2019, for office space at 500 Boylston St, Boston, Massachusetts (500 Boylston Lease). Under the terms of the 500 Boylston Lease, the Company was permitted to assign, sublease or transfer this lease, with the consent of the landlord.

On July 19, 2021, the Company entered into a sublease agreement with RFS OPCO LLC (Sublessee), whereby the Company agreed to sublease to Sublessee all of the 9,501 rentable square feet of 500 Boylston St. The expected undiscounted cash flows to be received from the sublease as of March 31, 2023 is as follows (in thousands):


	March 31, 2023
2023	$	531
2024		722
2025		736
2026		438
2027 and thereafter		—
Total	$	2,427

Further, the Company remains liable for the remaining lease payments under the Master Lease, totaling $2.2 million, which is included in future minimum lease payments table below.

The future minimum lease payments under all non-cancelable operating lease obligations as of March 31, 2023 were as follows (in thousands):


	March 31, 2023
2023	$	3,597
2024		5,005
2025		4,650
2026		3,999
2027 and thereafter		12,059
Total undiscounted lease payments		29,310
Less: imputed interest		(5,813	)
Total operating lease liability		23,497
Less: current portion		2,949
Operating lease liability, net of current maturities	$	20,548

The following table presents the operating lease cost and information related to the operating lease right-of-use assets, net and operating lease liabilities for the quarter ended March 31, 2023 (in thousands):


	March 31,
	2023
Lease Cost
Operating lease cost	$	1,141
Short-term lease cost		48
Sublease income		(179	)
Total lease cost	$	1,010
Other Information
Operating cash flows used for lease liabilities		2,474
Weighted-average remaining lease term - operating leases		6.3
Weighted-average discount rate - operating leases		7	%