In December 2015, the Company entered into a 10-year lease agreement (the "Inner Belt Road Lease") for approximately 25,785 square feet of space for its primary office and laboratory space in Somerville, Massachusetts. The monthly rental payments under the Inner Belt Road Lease, which include base rent charges of $0.1 million, are subject to periodic rent increases through September 2026.

In July 2016, the Company entered into a 10-year sublease agreement (the "200 Inner Belt Road Sublease") to share its leased space under the Inner Belt Road Lease with OpenBiome, a related party, as sub-tenant. The sublease with OpenBiome is coterminous with the Inner Belt Road Lease and provides for an allocation, based on OpenBiome’s proportionate share, of base rent and other expenses under the Inner Belt Road Lease, which is subject to change each year based on current headcount and space used. OpenBiome’s proportionate share is reassessed on a quarterly basis over the term of the sublease.

In January 2017, the Company amended the Inner Belt Road Lease to lease an additional 10,500 square feet of space for its primary office and laboratory space in Somerville, Massachusetts. The term of the Inner Belt Road Lease and the sublease with OpenBiome were not affected as a result of the amendment, although OpenBiome does occupy some of this additional space. The rental payments for the additional space under the amended Inner Belt Road Lease, which include base rent charges of approximately $33,000 per month, are subject to periodic rent increases through September 2026. In November 2020, pursuant to the OpenBiome Agreement, the Company and OpenBiome amended the terms of the sublease to provide for a reduction in the size of the subleased premises upon the closing of the OpenBiome Agreement (see Note 13), which occurred on March 1, 2021. The sublease was further amended on January 15, 2021 and June 22, 2021 and terminated on December 31, 2021.

The Company's lease expense under the Inner Belt Road Lease was $1.3 million for each of the years ended December 31, 2021 and 2020. The Company recognizes sublease income under the sublease to OpenBiome as rent is received over the sublease term. Gross lease income under the sublease to OpenBiome for each of the years ended December 31, 2021 and 2020 was $0.1 million and $0.4 million, respectively, and is presented as an offset to lease expense on the consolidated statements of operations.

On March 1, 2021, the Company assumed a lease agreement (the “Cherry Street Lease”) in conjunction with the closing of the OpenBiome Agreement. The lease term is from March 2021 through February 2023. The Company’s lease expense under the Cherry Street Lease for the years ended December 31, 2021 and 2020 was $0.1 million and $0, respectively.

On May 25, 2021, the Company entered into a lease agreement (the "Concord Avenue Lease") from May 2021 through February 2022. The Company’s lease expense under the Concord Avenue Lease for the years ended December 31, 2021 and 2020 was $0.2 million and $0, respectively. On August 17, 2021 Finch extended the term of the lease for an additional two-month period through April 2022 and on February 4, 2022 Finch further extended the lease for an additional month through May 2022. The Concord Avenue Lease qualifies as a short-term lease and will be excluded from the balance sheet.

On August 3, 2021 (the "Execution Date"), the Company entered into a 10-year lease agreement (the "Hood Lease") with Hood Park LLC (the "Landlord"), pursuant to which the Company will lease approximately 61,139 square feet of office and laboratory space (the "Premises"). The term of the Hood Lease commenced on the Execution Date, and Finch will become responsible for paying rent under the Hood Lease on the earlier of (i) January 1, 2022 and (ii) the date Finch’s improvement on the Premises is substantially completed and Finch has commenced business operations in the Premises (the “Rent Commencement Date”). As of December 31, 2021, the Rent Commencement Date had not occurred and no lease expense, right-of-use asset, or lease liability was recognized under the Hood Lease.

The Hood Lease provides Finch with an option to extend the lease for one additional five-year term. Finch’s annual base rent for the Premises will start at approximately $4.5 million, and the lease contains annual rent escalations. The Hood Lease provides for a tenant improvement allowance of approximately $14.8 million for the cost of Finch’s work on the Premises. As of December 31, 2021, $5.3 million of lessor owned tenant improvements were completed by the Company and are recorded in other current assets on the consolidated balance sheet.

The Company posted a customary letter of credit in the amount of approximately $2.3 million, subject to decrease on a set schedule, as a security deposit pursuant to the Hood Lease. This is included in restricted cash, non-current on the consolidated balance sheet as of December 31, 2021.

The following table presents the classification of right-of-use assets and lease liabilities as of December 31, 2021:


	BALANCE SHEET CLASSIFICATION	DECEMBER 31, 2021
ASSETS
Operating lease assets	Operating right-of-use assets	$	5,053
Finance lease assets	Property and equipment, net		22
Total lease assets			5,075
Liabilities
Current
Operating lease liabilities	Operating lease liabilities, current	$	1,128
Finance lease liabilities	Other current liabilities		19
Noncurrent
Operating lease liabilities	Operating lease liabilities, non-current		4,887
Finance	Other liabilities		7
Total lease liabilities		$	6,041

The following table represents the components of lease cost, which are included in general and administrative and research and development expense on the statement of operations, for the year ended December 31, 2021:


LEASE COST	DECEMBER 31, 2021
Finance lease cost:
Amortization of right-of-use assets	$	27
Interest on lease liabilities		10
Operating lease cost		1,336
Short-term lease cost		254
Variable lease cost		525
Sublease income		(88	)
Total lease cost	$	2,064

The following table represents a summary of the Company’s future lease payments required as of December 31, 2021:


	OPERATING LEASE OBLIGATIONS			HOOD PARK LEASE OBLIGATIONS		FINANCE LEASE OBLIGATIONS			TOTAL LEASE OBLIGATIONS
2022	$	1,487		$	4,535	$	24		$	6,046
2023		1,440			4,663		6			6,109
2024		1,460			4,795		—			6,255
2025		1,496			4,931		—			6,427
2026		1,116			5,071		—			6,187
Thereafter		—			27,605		—			27,605
Total future minimum lease payments	$	6,999		$	51,600	$	30		$	58,629
Less: amount representing interest		(984	)		—		(5	)		(989	)
Present value of future minimum lease payments	$	6,015		$	51,600	$	25		$	57,640

The following represents a summary of the Company's future minimum lease payments under non-cancelable lease agreements, presented in accordance with ASC 840, as of December 31, 2020:


	OPERATING LEASE OBLIGATIONS		FINANCE LEASE OBLIGATIONS			TOTAL LEASE OBLIGATIONS
2021	$	1,351	$	36		$	1,387
2022		1,387		24			1,411
2023		1,424		6			1,430
2024		1,460		—			1,460
2025		1,496		—			1,496
Thereafter		1,115		—			1,115
Total minimum lease payments	$	8,233	$	66		$	8,299
Less: amount representing interest		—		(14	)		(14	)
Present value of minimum lease payments	$	8,233	$	52		$	8,285