Leases

12 Months Ended

Dec. 31, 2023

6. LEASES

Net lease cost recognized for 2023 is summarized as follows (in thousands):


	Year Ended December 31, 2023			Year Ended December 31, 2022
Operating lease cost	$	2,577		$	2,378
Sublease income		(1,928	)		(1,928	)
Net lease cost	$	649		$	450

As of December 31, 2023, the maturities of the lease liabilities based on minimum lease commitment amount are as follows (in thousands):


2024	$	3,022
2025		1,880
2026		-
2027		-
Total minimum lease payments		4,902
Less: Imputed interest		(1,071	)
Present value of operating lease liabilities		3,831
Less: Current portion of operating lease liabilities		(2,436	)
Non-current operating lease liabilities	$	1,395

In November 2020, the Company entered into a non-cancellable sublease agreement for the leased facilities in South San Francisco, California, which ends concurrently with the original lease in September 2025.

As of December 31, 2023, under the terms of the sublease agreement, the Company is entitled to receive future annual sublease payments as follows (in thousands):


2024	$	1,954
2025		1,496
Total sublease payments	$	3,450

The subtenant of the leased facilities in South San Francisco, California, has disclosed in public filings that there is substantial doubt regarding its ability to continue as a going concern. As tenant, the Company remains responsible for minimum lease commitments of $4.3 million as of December 31, 2023, on the South San Francisco facilities.

In November 2021, the Company entered into a lease agreement that was amended in July 2022 for its headquarters office space in Brisbane, California. The lease term is through November 2024 with renewal options for the Company.

As of December 31, 2023, the Company had not executed any finance leases that were yet to commence. As of December 31, 2023, the weighted-average remaining operating lease term was 1.5 years and the weighted-average discount rate was 9.1% for operating leases recognized in the financial statements.