The Company leases its office, laboratory and manufacturing space under two noncancelable leases (the “Leases”) that expire in December 2027 and include a lease incentive, fixed payment escalations, and rent holidays. The Leases include an option to renew for an additional five years. The option to extend the lease term was not included in the right-of-use asset and the lease liability as it was not reasonably certain of being exercised. The Company classified the Leases as operating leases under ASC 842. Annual base rent increases at an average rate of 2.5% each year until the end of the term. The Company is also obligated to pay the landlord certain costs, taxes, and operating expenses, subject to certain exclusions. As these costs are generally variable in nature, they are not included in the measurement of the right-of-use asset and related lease liability.

Under the Leases, the landlord will contribute up to $3.4 million towards the Company’s leasehold improvements. The Company determined that it owns the leasehold improvements related to the Leases and, as such, reflected the $3.4 million

lease incentive as a reduction of rental payments used to measure the operating lease liability, and, in turn, the operating lease right-of-use asset upon adoption of ASC 842.

	Year Ended
	December 31, 2021
Operating lease cost	$	1,353
Short-term lease cost		159
Variable lease cost		640
	$	2,152

Supplemental disclosure of cash flow information related to the leases were as follows (in thousands):

	Year Ended
	December 31, 2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,901
Operating lease liabilities arising from obtaining right-of-use assets and leasehold improvements	$	—

The weighted-average remaining lease term as of December 31, 2021 was 6.0 years. The weighted-average discount rate as of December 31, 2021 was 6.7%. Because the interest rate implicit in the lease was not readily determinable, the Company’s estimated incremental borrowing rate was used to calculate the present value of the Leases. In determining its incremental borrowing rate, the Company considered its credit quality and assessed interest rates available in the market for similar borrowings, adjusted for the impact of collateral over the term of the lease.

Future annual lease payments under the Company’s Leases as of December 31, 2021 are as follows (in thousands):

Year Ending December 31,
2022	$	1,948
2023		1,997
2024		2,047
2025		2,098
2026		2,150
Thereafter		2,204
Total future minimum lease payments		12,444
Less: imputed interest		(2,273	)
Less: estimated lease incentives		(1,567	)
Total operating lease liabilities	$	8,604

The following table represents lease liabilities on the consolidated balance sheet (in thousands):

	December 31, 2021
Current operating lease liabilities	$	—
Operating lease liabilities, net of current portion		8,604
Total operating lease liabilities	$	8,604

Under prior lease guidance, minimum lease payments under operating leases were as follows as December 31, 2020 (in thousands):

Year Ending December 31,
2021	$	1,900
2022		1,948
2023		1,997
2024		2,047
2025		2,098
Thereafter		4,354
	$	14,344