The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2022 using the modified retrospective approach. The Company elected to apply the modified retrospective approach that allowed it to continue applying the guidance in effect, at the time of adoption, in the comparative periods presented in the Condensed Consolidated Balance Sheets and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit on the date of adoption. The Company also elected the package of practical expedients, which permits it not to reassess under the new standard the prior conclusions about lease identification, lease classification and initial direct costs. Lastly, the Company elected the short-term lease practical expedients allowed under the standard and the practical expedient to use hindsight in determining the lease term for all its leases.

As a result of applying the modified retrospective approach to adopt the lease guidance, the following adjustments were made to accounts on the Condensed Consolidated Balance Sheet as of January 1, 2022 (in thousands):


Balance Sheet	December 31, 2021		Effect of adoption of ASC 842			January 1, 2022
Assets
Operating lease right-of-use assets	$	—	$	6,585		$	6,585
Total assets	$	—	$	6,585		$	6,585
Liabilities
Operating lease liabilities, current	$	—	$	1,471		$	1,471
Deferred rent (1)		2,386		(2,386	)		—
Operating lease liabilities, non-current		—		7,500			7,500
Total Lease Liabilities	$	2,386	$	6,585		$	8,971
(1) Included in other liabilities and deferred rent, net of current portion on the balance sheet.

In May 2015, the Company entered into an operating lease for 30,376 square feet of laboratory and office facilities in South San Francisco, California, which was to expire in May 2022. In April 2018, the Company amended the lease agreement to include an additional 6,378 square feet of laboratory and office space increasing the total leased premises to 36,754 square feet. The lease amendment extended the lease term to November 2026 and contained scheduled rent increases over the lease term and an option for the Company to extend the lease for an additional five-year term.

The Company does not have any financing lease agreements as of September 30, 2022.

The following table summarizes maturities of operating lease liabilities as of September 30, 2022 (in thousands):


2022 (remaining three months)	$	514
2023		2,109
2024		2,183
2025		2,259
2026		2,137
Thereafter		—
Total future undiscounted lease payments		9,202
Less: Imputed interest		(1,335	)
Total Lease Liabilities	$	7,867

The following table summarizes the balance sheet classification of operating leases at September 30, 2022 (in thousands):


Operating leases
Operating lease right-of-use assets	$	5,782

Operating lease liabilities, current		1,551
Operating lease liabilities, non-current		6,316
Total operating lease liabilities	$	7,867

For the three and nine months ended September 30, 2022, the Company incurred $0.4 million and $1.3 million, respectively, of lease expense included in operating expenses in the condensed consolidated statement of operations in relation to the operating lease. Variable lease expense was insignificant for the three and nine months ended September 30, 2022, respectively. Rent expense was $0.6 million and $1.5 million during the three and nine months ended September 30, 2022, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2022 was $1.6 million and was included in net cash used in operating activities in the Company’s condensed consolidated statements of cash flows.

As of September 30, 2022, the weighted-average remaining lease term and discount rate for the Company’s operating leases was 4.17 years and 8%, respectively.