The Company leases its corporate headquarters, which includes approximately 136,293 square feet of executive offices and research and development and business operations, in an office park in Hayward, California under a non-cancelable operating lease with terms that expire in 2031. The Company also leases space in Brisbane, California under a non-cancelable operating lease that expires in 2031. Both leases are subject to options by the Company to extend the lease terms.

In April 2021, the Company amended the non-cancelable operating lease for its corporate headquarters, which includes approximately 136,293 square feet of executive offices and research and development and business operations, in an office park in Hayward, California. The amended lease added 14,460 square feet of additional space in a new lease expected to commence in 2022, and extended the term of the existing leases through at least December 31, 2031. Once the lease of additional space commences, the Company’s leased space in Hayward will total 150,753 square feet. Any extension periods defined under previous amendments were cancelled under the lease amendment and replaced by two options to extend the lease term for the entire 150,753 square feet then under lease in the Hayward premises for a period of eight years each.

The Company's lease of its space in an office park in Brisbane, California commenced in November 2021. Under this lease, the Company received 109,237 square feet of space in an office building in Brisbane, California. The lease granted the Company certain incentives such as a three-month rent abatement period, a tenant improvement allowance dedicated for the building's initial construction, and an additional tenant improvement allowance to be used at the Company's option. The Company utilized a portion of the additional tenant improvement allowance during the building's construction, which will be repaid with interest through adjustments to base rent during the lease term. The term of the lease will extend through December 31, 2031. The Company has two options to extend the lease term for the space for a period of eight years each.

At December 31, 2021 the Company’s lease portfolio had a weighted average remaining term of 10.0 years. The leases require monthly lease payments that are subject to annual increases throughout the lease term. The optional period has not been considered in the determination of the right-of-use assets or lease liabilities associated with this lease as the Company did not consider it reasonably certain it would exercise the option.

The weighted average discount rate for the Company’s lease portfolio at December 31, 2021 was 5.1%.

Lease expense is included in operating expenses in the consolidated statements of operations and comprehensive income (loss). For the years ended December 31, 2021 and 2020, the Company incurred lease expense of $7.1 million and $2.7 million, respectively. Lease costs include variable rent expense, which consists primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and is classified as lease expense due to the Company’s election to not separate lease and non-lease components. Short-term lease costs were $0.3 million and $0.2 million for the years ended December 31, 2021 and 2020, respectively.

At December 31, 2021, the Company’s operating lease right-of-use asset totaled $105.0 million, and the operating lease liability totaled $113.6 million. The difference between the amount of the right-of-use asset and the lease liabilities relates to the incentives the Company received upon signing the original leases and its most recent amendment, of which approximately $8.4 million is expected to be received within one year and is recorded in prepaid expenses and other current assets, net of the $5.1 million short-term portion of the operating lease liability. The long term portion of the lease liability was $116.9 million at December 31, 2021 and is reported on the consolidated balance sheet as operating lease liability, noncurrent.

The following table summarizes supplemental cash flow disclosures and non-cash financing activities related to our operating leases (in thousands):


	Year Ended December 31,
	2021		2020
Cash paid for amounts included in measurement of lease liabilities	$	4,890	$	2,105
Cash received from tenant improvement allowances	$	2,967	$	-
Right-of-use assets obtained in exchange for new operating lease liabilities	$	95,401	$	8,019
Recognition of tenant improvement allowance receivable included in other current assets	$	10,598	$	979

As of December 31, 2021, the Company’s future minimum lease payments were as follows (in thousands):



Year Ending December 31,	Operating Leases
2022	$	11,198
2023		14,281
2024		14,759
2025		15,255
2026		15,769
Thereafter		87,236
Total undiscounted future minimum lease payments		158,498
Less: Imputed interest		(36,562	)
Less: Tenant improvement allowance receivable		(8,381	)
Total operating lease liabilities		113,555
Tenant improvement allowance expected to be received in less than one year, net of current portion of lease liability (included in prepaid expenses and other current assets)		3,332
Operating lease liabilities, noncurrent	$	116,887

Total undiscounted future minimum lease payments do not include approximately $5.3 million related to the Company’s lease of additional space lease in Hayward that has not yet commenced. This lease is expected to commence during 2022 with a lease term through at least December 31, 2031.

The Company has provided deposits for letters of credit totaling $3.0 million to secure its obligations under its lease, which have been classified as long-term assets on the Company’s consolidated balance sheet as of December 31, 2021.