Leases

3 Months Ended

Mar. 31, 2024

5. Leases

In December 2023, the Company entered into a 7-year lease for 99,557 square feet of lab and office space in San Carlos, California. The agreement provides for two options to renew for three years each, which the Company is not reasonably certain to exercise. The Company is required to maintain a letter of credit for $0.6 million which has been classified as non-current restricted cash on the unaudited condensed balance sheets.

The Company also leases 31,117 square feet of lab and office space in San Mateo, California which expires in November 2024. The Company was a sublessor in two agreements for a combined 2,300 square feet of the Company’s leased premises which expired in May 2023 and October 2023.

The future payments associated with the Company’s operating lease liabilities as of March 31, 2024 were as follows:


	Amount
	(in thousands)
2024 (remaining nine months)	$	1,703
2025		4,676
2026		7,224
2027		7,441
Thereafter		25,784
Total undiscounted lease payments		46,828
Less: imputed interest		(18,623	)
Total operating lease liabilities	$	28,205

A summary of total lease costs and other information for the periods relating to the Company’s operating leases was as follows:


	Three months ended March 31,
	2024		2023
	(in thousands)
Operating lease cost	$	2,249	$	563
Variable lease cost		227		129
Sublease income		—		(80	)
Total lease cost	$	2,476	$	612


	March 31, 2024	December 31, 2023
Other information:
Weighted-average remaining lease term (in years)	6.6	6.7
Weighted-average discount rate	13.6%	13.6%

Supplemental cash flow and noncash information related to the Company’s operating leases was as follows:


	Three months ended March 31,
	2024		2023
	(in thousands)
Cash flows from operating activities:
Cash paid for amounts included in the measurement of lease liabilities	$	1,285	$	451
Right-of-use assets obtained in exchange for lease obligations:
Total right-of-use assets capitalized	$	—	$	2,291