In December 2016, the Company entered into a lease agreement for office and laboratory space in South San Francisco, California. The lease was initially set to expire in May 2025 and the Company may renew the lease term for two additional five-year periods. In June 2024, the Company entered the First Amendment to the lease. Under the First Amendment, the Company extended the term of the lease from June 2025 through November 2027. This extended term was deemed to represent the first of the two renewal options. The Company has one option remaining to extend the lease term for a period of five years at the end of the extended lease term.

In February 2021, the Company entered into a lease agreement for the Union City Facility. The lease commenced in May 2021 and has a ten-year term with one five-year renewal option.

In November 2021, the Company entered into a short-term sublease agreement for additional office and laboratory space in South San Francisco, California with a lease term that was initially set to expire on June 30, 2022. In May 2022, the Company entered into an amendment to extend the term for the existing sublease premise through December 31, 2022. Under the amendment, the Company also subleased additional office and laboratory space at the same sublease premise through November 30, 2023. In October 2023, the Company entered into a second amendment for additional laboratory space and to extend the term of the sublease premise through November 30, 2024.

Information related to operating lease activity during the three and six months ended June 30, 2024 was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Operating lease cost	$	1,075	$	1,091	$	2,150	$	2,181
Variable lease cost		336		322		703		595
Short-term lease cost		—		—		—		5
Total lease cost	$	1,411	$	1,413	$	2,853	$	2,781

Operating lease right-of-use assets obtained in exchange for lease obligations					$	5,302	$	—
Cash paid for amounts included in the measurement of lease liabilities					$	2,677	$	2,646

As of June 30, 2024, the Company’s operating leases had a weighted average remaining lease term of 5.0 years and a weighted average discount rate of 8.8%. As of December 31, 2023, the Company’s operating leases had a weighted average remaining lease term of 5.1 years and a weighted average discount rate of 9.3%. Future minimum lease payments under the Company’s operating leases as of June 30, 2024 were as follows:


	Amount
	(In thousands)
2024 (remaining 6 months)	$	2,600
2025		3,861
2026		3,864
2027		3,775
2028		1,471
Thereafter		4,006
Total undiscounted future minimum lease payments	$	19,577
Imputed interest		(4,004	)
Total operating lease liabilities	$	15,573

The Company enters into contractual agreements with various suppliers in the normal course of its business, including vendors that provide machinery and equipment. All contracts are terminable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would only be obligated for the products or services that the Company had received through the time of termination.

From time to time, the Company may become involved in litigation and other legal actions. The Company estimates the range of liability related to any pending litigation where the amount and range of loss can be estimated. The Company records its best estimate of a loss when the loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (ii) the range of loss can be reasonably estimated. The Company was not involved in any material litigation as of June 30, 2024.

In the normal course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amounts of future payments the Company could be required to make under these provisions is not determinable. In addition, the Company has entered into indemnification agreements with its directors and certain officers that may require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. As of June 30, 2024, the Company did not have any material indemnification claims that were probable or reasonably possible and, consequently, has not recorded any related liabilities.