Leases

9 Months Ended

Sep. 30, 2021

In January 2021, the Company commenced a new lease at a new location in San Jose, California. The lease expires in February 2028. The Company is obligated to pay approximately $11 million over the term of the lease. The Company leases office space under non-cancellable operating leases with terms expiring from December 2021 through February 2028. The leases require monthly lease payments that are subject to annual increase throughout the lease term.

The Company adopted ASC 842 as of January 1, 2020, using the modified retrospective approach. Rent expense was $0.4 million and $1.3 million for the three and nine months ended September 30, 2021, respectively, and was $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively.

The Company performed evaluations of its contracts and determined that each of its identified leases are classified as operating leases. The components of operating lease expense were as follows:


(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	435	$	68	$	1,306	$	204
Variable lease expense	147		6		442		18
Short-term lease expense	2		2		8		4
Total lease expense	$	585	$	75	$	1,757	$	226

Variable lease expense consists of the Company’s proportionate share of operating expenses, property taxes, and insurance.

The lease right of use assets and lease liabilities recognized in the condensed consolidated balance sheets are as follows:


(in thousands)	As of September 30, 2021		As of December 31, 2020
Right of use asset in other non-current assets	$	7,846	$	316

Other current liabilities	$	1,146	$	254
Other non-current liabilities	7,565		72
Total lease liability	$	8,711	$	326

As of September 30, 2021, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
Remainder of 2021	$	432
2022	1,561
2023	1,533
2024	1,580
2025	1,627
Thereafter	3,700
Total lease payments	10,434
Less: Imputed interest	(1,722)
Present value of lease liabilities	$	8,711