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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases LEASES
As a lessee, the Company leases approximately 51,000 square feet of office and laboratory space in Redwood City, California with a lease term that is set to end on September 30, 2032. The Company has an option to renew all leased space for an additional five-year term at then-current market rates. In connection with the lease, the Company maintains a letter of credit issued to the lessor in the amount of $0.5 million as of September 30, 2023 and December 31, 2022, which is secured by restricted cash and is presented as noncurrent at each date based on the term of the underlying lease. In addition, the Company leases approximately 6,000 square feet of office space in San Diego, California pursuant to a lease that runs through September 2024.
As of September 30, 2023, the remaining weighted-average lease term was 8.9 years and the weighted-average incremental borrowing rate used to determine the operating lease liabilities was 6.2%.
The components of lease costs related to the Company’s operating leases were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating lease costs$1,038 $959 $3,114 $2,730 
Variable lease costs201 161 224 439 
Short-term lease costs— 73 20 211 
Total lease costs$1,239 $1,193 $3,358 $3,380 
Variable lease costs are primarily comprised of common area maintenance.
As of September 30, 2023, future minimum commitments under the Company’s non-cancellable facility operating leases are as follows:
Years ending December 31,(in thousands)
2023 (remaining three months)
$991 
20243,969 
20253,846 
20263,957 
20274,072 
Thereafter21,065 
Total undiscounted future minimum lease payments37,900 
Present value adjustment for minimum lease commitments(9,091)
Total operating lease liabilities$28,809 
As a lessor, the Company has contracts for equipment leased to customers. The Company accounts for the non-lease component under the revenue recognition ASC 606 guidance and the lease component under ASC 842 guidance. For an arrangement that has been classified as a sales-type lease, revenue is recognized when the transfer of control of the underlying leased asset has occurred and the net investment lease recorded, which is calculated at the present value of the remaining lease payments due from the lessee.