Leases

3 Months Ended

Mar. 31, 2024

Note 5. Leases

Operating Leases

The Company leases its headquarters with its main offices and laboratory facilities in Redwood City and San Carlos, California, pursuant to leases which expire in 2025 and 2027, respectively. The San Carlos lease includes a renewal option for an additional five years until January 2032, which has been included in the determination of the right-of-use as of March 31, 2024.

In November 2023, the Company submitted a claim of approximately $1.5 million against tenant improvement allowance reimbursement in connection with its operating lease for lab space located at 1585 Industrial Road, San Carlos, California which was received in January 2024. Of the total reimbursement, approximately $0.4 million constitutes a loan required to be repaid in the form of additional lease payments over the remaining original lease term at an annual interest rate of 7%. Upon receipt of the reimbursement, the Company remeasured the lease liability and related right-of-use asset.

The following table summarizes the lease costs and cash paid for the Company’s leases (in thousands):


	Three Months Ended
	March 31,
	2024		2023
Cash paid for operating lease liabilities	$	640	$	840
Operating lease costs		990		980
Short-term lease cost		—		—
Variable lease costs		381		245

The maturities of lease liabilities as of March 31, 2024 were as follows (in thousands):


	Operating Lease
Year Ending December 31,	Commitments
2024 (remaining nine months)	$	3,154
2025		2,903
2026		1,525
2027		1,443
2028		1,474
Thereafter		4,827
Total future undiscounted lease payments		15,326
Less: Imputed interest		(4,234	)
Total operating lease liabilities	$	11,092
Operating lease liabilities, current		3,166
Operating lease liabilities, non-current		7,926
Total operating lease liabilities	$	11,092

Supplemental balance sheet information related to leases was as follows:


	Three Months Ended
	March 31,
	2024			2023
Weighted-average remaining lease term (in years) - operating leases		5.9			6.1
Weighted-average discount rate - operating leases		11.42	%		11.43	%