Leases

12 Months Ended

Dec. 31, 2021

5. Leases

The Company has a single operating lease for its corporate headquarters and laboratory space in San Diego, California. The lease expires in July 2025 and the Company has an option to extend the term of the lease for an additional five years. However, it is not reasonably certain the Company will exercise the option to renew when the lease term ends and thus, the incremental term was excluded from the calculation of the lease liability. Additionally, the lease includes certain rent abatement, rent escalations, tenant improvement allowances and additional charges for common area maintenance and other costs.

Supplemental balance sheet information related to lease liabilities at December 31, 2021, was as follows (in thousands):


Lease-Related Assets and Liabilities	Financial Statement Line Items	As of December 31, 2021
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	3,300
Total right-of-use assets		$	3,300
Lease Liabilities:
Operating leases	Operating lease liabilities	$	1,389
	Operating lease liabilities, noncurrent		3,982
Total lease liabilities		$	5,371

The components of lease expense included in the Company’s consolidated statements of operations include (in thousands):


	Year Ended December 31, 2021
Operating lease expense	$	1,043
Variable lease expense		512
Total lease expense, net	$	1,555

Variable lease costs are primarily related to payments made to lessors for common area maintenance, property taxes, insurance, and other operating expenses. The Company did not have any short-term leases or finance leases for the year ended December 31, 2021.

The weighted average remaining lease term and weighted average discount rate for operating leases as of December 31, 2021 were as follows:


	Year Ended December 31, 2021
Weighted average remaining lease term (in years)		3.5
Weighted average discount rate percentage		3.50	%

Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands):


	Year Ended December 31, 2021
Cash paid for amounts included in the measurement of operating leases	$	1,374

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):


Years ending December 31:	Operating lease
2022	$	1,555
2023		1,636
2024		1,685
2025		845
Thereafter		—
Total future lease payments		5,721
Less imputed interest		(350	)
Total operating lease liabilities	$	5,371

As of December 31, 2020, prior to the Company’s adoption of ASC 842, annual minimum payments under noncancelable operating leases were as follows (in thousands):


Years ending December 31:	Operating lease
2021	$	1,374
2022		1,555
2023		1,636
2024		1,685
Thereafter		845
Total minimum lease payments	$	7,095

Under ASC 840, during the years ended December 31, 2020 and 2019, net rent expense was $1.7 million and $1.1 million, respectively.