In December 2019, the Company entered into a lease agreement for its new corporate office and laboratory facility (the “Cambridgepark Lease”) in Cambridge, Massachusetts. The Cambridgepark Lease has a term of 10

years, beginning on the rent commencement date which is two months after the lease commencement date. There are no options to extend the lease. The lease commencement date, for accounting purposes, was deemed to be reached as of June 30, 2020.

On June 15, 2021, the Company entered into the first lease amendment (“First Lease Amendment”) and the second lease amendment (“Second Lease Amendment” and, together with the First Lease Amendment, the “Lease Amendments”) with PPF Off 100 Cambridge Park Drive, LLC (the “Landlord”). The Lease Amendments amended the Cambridgepark Lease with the Landlord in Cambridge, Massachusetts to add additional leased space in the same building (the “Amended Cambridgepark Lease”).

The First Lease Amendment expanded the amount of space leased by the Company by an additional 10,262 square feet in exchange for aggregate total fixed rent payments of approximately $8.4 million with the annual fixed rental payments escalating from $0.8 million to $1.1 million during the term. The First Lease Amendment commenced for accounting purposes on January 28, 2022.

The Second Lease Amendment expands the amount of space leased by the Company by an additional 30,175 square feet in exchange for aggregate total fixed rent payments of approximately $22.3 million with the annual fixed rental payments escalating from $1.1 million to $3.0 million during the term. The Second Lease Amendment’s term commenced for accounting purposes on April 29, 2022.

Payments associated with the Amended Cambridgepark Lease include fixed and variable payments. Variable payments relate to the Company’s share of the Landlord’s operating costs associated with the underlying assets and are recognized when the event on which those payments are assessed. The Amended Cambridgepark Lease does not contain a residual value guarantee. The Lease Amendments term end dates are coterminous with the Cambridgepark Lease.

In conjunction with the Amended Cambridgepark Lease, the Company was required to establish a $2.4 million irrevocable standby letter of credit for the benefit of the Landlord, which has been secured by money market investments and is presented as restricted cash equivalents.

The elements of lease expense were as follows:


	Year Ended December 31,
(in thousands)	2023		2022
Operating lease cost	$	7,802	$	6,435
Variable lease cost		2,618		1,798
Total lease cost	$	10,420	$	8,233

Amounts reported in the consolidated balance sheets and the weight-average lease term and discount rate information were as follows:


(in thousands except weighted-average amounts)	December 31, 2023			December 31, 2022
Assets
Operating lease right-of-use assets	$	40,048		$	44,444
Liabilities
Operating lease liabilities, current	$	3,830		$	3,272
Operating lease liabilities, non-current		31,830			35,640
Total lease liabilities	$	35,660		$	38,912
Weighted-Average Lease Term and Discount Rate
Weighted-average remaining lease term (years)	6.7			7.7
Weighted-average discount rate		8.2	%		8.2	%

The following table represents other lease activity:


	Year Ended December 31,
(in thousands)	2023		2022
Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	6,658	$	13,311
Right-of-use assets obtained in exchange for lease obligations	$	—	$	23,376

Future lease payments for noncancelable leases as of December 31, 2023 were as follows:


(in thousands)	December 31, 2023
2024	$	6,591
2025		6,651
2026		6,681
2027		6,882
2028		7,088
Thereafter		12,902
Total lease payments	$	46,795
Less: imputed interest		(11,135	)
Present value of lease liabilities	$	35,660