Leases

12 Months Ended

Dec. 31, 2021

On January 1, 2021, the Company adopted ASC 842 and the following disclosures as of and for the year ended December 31, 2021 are presented under ASC 842.

In February 2018, the Company entered into a non-cancelable lease agreement (the “Lease”) for premises consisting of approximately 32,974 square feet located in South San Francisco, California (the “Premises”). The Company moved into the Premises in July 2018. The Premises is being used for the Company’s corporate headquarters and principal operating facility. The term of the Lease is eighty-four months, which commenced on July 1, 2018. Base rent was abated for the first two months of the lease term and thereafter is $0.2 million per month during the first year of the lease term, with specified annual increases thereafter. The Company paid a refundable security deposit of approximately $0.4 million, which is included in other non-current assets in the Balance Sheets at December 31, 2021 and 2020. The Company has the right to extend the lease term by seven years upon written notice not more than twelve months nor less than nine months prior to the expiration of the original lease term, with monthly payments equal to the “fair rental value” as defined in the Lease. The exercise of lease renewal options is at the sole discretion of the Company and is not included in the ROU asset and lease liability as it is not reasonably certain of exercise. This lease does not contain material variable rent payments, residual value guarantees, covenants, or other restrictions.

For the year ended December 31, 2021, the Company recognized expenses associated with the operating leases of $2.3 million. Additionally, the Company incurred variable lease costs of $0.9 million which is comprised primarily of the Company's proportionate share of operating expenses, property taxes, and insurance. Short-term lease expense and variable lease payments recorded in operating expenses were immaterial for the year ended December 31, 2021. Cash paid for amounts included in the measurement of operating lease liabilities was $2.4 million.

Maturities of the Company's operating lease liability as of December 31, 2021 were as follows:


Year ending December 31:	Operating Lease
2022	$	2,360
2023	2,295
2024	2,365
2025	1,202
2026	—
Total lease payments	$	8,222
Less: Present value discount	1,028
Total operating lease liabilities	$	7,194

The weighted-average remaining lease terms and discount rates related to the Company's operating leases were as follows:


	As of December 31, 2021
Weighted-average remaining lease term (in years)	3.40
Weighted-average discount rate	7.90	%

Total rent expense under ASC 840 was $2.5 million during each of the years ending December 31, 2020 and 2019.

Future minimum lease payments under the Lease as of December 31, 2021 were as follows (in thousands):


Year ending December 31:	Operating Lease
2022	$	2,098
2023	2,171
2024	2,247
2025	1,144
Total lease payments	$	7,660