In August 2019, the Company entered a lease for laboratory and office space with a term that expires on September 30, 2024, subject to certain renewal options, which are not deemed highly probable of renewal. The Company provided a letter of credit in the amount of $0.6 million as security for the lease which expires January 31, 2025. The cash securing the letter of credit is classified as restricted cash on the consolidated balance sheet.

In April 2020, laboratory and office space were secured through a sublease that commenced in June 2020 and will continue through March 2026. The Company provided a cash deposit of $0.2 million in conjunction with the execution of the lease which is classified as a long-term asset on the consolidated balance sheet.

On November 1, 2021, the Company entered a new lease for laboratory and office space. This lease will commence when the Company obtains possession of the underlying asset, which is expected to be November 1, 2022. The Company provided a letter of credit in the amount of $4.4 million as a security for the lease, which expires on November 30, 2022, at which point the letter will automatically renew each calendar year up to but not beyond April 1, 2033. The cash securing the letter of credit is classified as restricted cash on the consolidated balance sheet. Annual fixed rent will start at $7.6 million increasing 3% annually to $9.9 million through the original term of the lease, which is ten years and two months following the lease commencement date.

The Company lease cost was $1.3 million and $1.3 million for the years ended December 31, 2021 and 2020, respectively. These amounts include short-term and variable lease costs, which were not significant in any period presented.

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


	Year ended
	December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,948	$	1,478

The weighted-average remaining lease term and discount rate were as follows:


	Year ended
	December 31,
	2021			2020
Weighted-average remaining lease term (in years)		3.4			4.4
Weighted-average discount rate		8	%		8	%

The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2021 (in thousands):


Year Ending December 31,	Operating
2022	$	2,075
2023		2,131
2024		1,812
2025		730
2026		184
Thereafter		-
Total future minimum lease payments (1)		6,932
Less: imputed interest		889
Present value of operating lease liability	$	6,043

(1) As of December 31, 2021, the Company entered into an additional operating lease which had not yet commenced and is therefore not part of the table above nor included in the lease right-of-use asset and liability. This lease will commence when the Company obtains possession of the underlying asset, which is expected to be November 1, 2022.

The Company obtained the worldwide exclusive license to its foundational technology from The Brigham and Women’s Hospital, Inc. (or BWH). The license, as amended, grants worldwide exclusive use to the patent underlying the TargetScan technology in exchange for fees including development milestones and various royalties on product sales should they occur in the future.

In June 2018, the Company amended and restated an existing royalty agreement with one of its founders. Under the amended and restated royalty agreement, the Company agreed to pay the founder an aggregate royalty of 1% of net sales of any product sold by the Company or by any of its direct or indirect licensees for use in the treatment of any disease or disorder covered by a pending patent application or issued patent held or controlled by the Company as of the last date that the founder was providing services to the Company as a director or consultant under a written agreement in perpetuity. Royalties are payable with respect to each applicable product for a defined period of time set forth in the royalty agreement. The founder assigned his rights and obligations under the royalty agreement to one of his affiliated entities in January 2021.