On November 19, 2021, the Company entered into a new 15-year lease for approximately 144,000 square feet of office and research and development laboratory space under construction in San Diego, California. This facility will replace the Company’s current office and research facility sublease located in San Diego, California. The increased capacity of this new facility compared to the Company’s current research facility in San Diego will accommodate increased personnel for its expanding pipeline of current and future drug candidates. The estimated rent commencement date for the new lease is in April 2023 after construction and leasehold improvements have been completed. The lease payments, which begin on the rent commencement date, will be approximately $119.0 million over the initial 15-year term. The Company also estimates payments for operating expenses to be approximately $3.0 million for the first year of the lease, and these payments will continue throughout the initial 15-year term. The Company expects to pay approximately $31.0 million for leasehold improvements, net of tenant improvement allowances. Pursuant to the lease, within twelve months of the expiration of the initial 15-year term, the Company has the option to extend the lease for up to one additional ten-year term, with certain annual increases in base rent.

Other Significant Leases

Pasadena, California: The Company leases office space located at 177 Colorado Blvd for its corporate headquarters from 177 Colorado Owner, LLC. The lease began on September 30, 2019 and expires on April 30, 2027. The lease contains an option to renew for one term of five years. On October 23, 2020, the Company entered into a lease expansion to add an additional approximately 24,000 square feet of office with a lease expiration date of April 30, 2027.

San Diego, California: The Company subleases space from Halozyme, Inc. for additional research and development facility in San Diego, California. The term of this sublease commenced on April 1, 2020 and will end on January 14, 2023.

Madison, Wisconsin: The Company leases space for office and laboratory facilities, which had an expiration date of September 30, 2026. The lease was amended in January 2019 and May 2020 to expand the rentable square feet by an additional 40,000 square feet and to extend the lease expiration date to September 30, 2031. The lease contains two options to renew for two terms of five years. In November 2020 and December 2020, the Company entered into amendments to expand the rentable square space by an additional 10,743 square feet for the remainder of the term.

The components of lease assets and liabilities along with their classification on the Company’s consolidated balance sheets were as follows:


		September 30,
Lease Assets and Liabilities	Classification	2022		2021
		(in thousands)

Operating lease assets	Right-of-use assets	$	58,291	$	17,346

Current operating lease liabilities	Lease liabilities	2,776		2,250
Non-current operating lease liabilities	Lease liabilities, net of current portion	78,800		23,295

The components of lease cost along with its classification on the Company’s consolidated statements of operations were as follows:


		Year Ended September 30,
Lease Cost	Classification	2022		2021		2020
		(in thousands)

Operating lease cost	Research and development	$	7,278	$	3,649	$	925
	General and administrative expense	1,757		1,498		1,474

Variable lease cost	Research and development	728		814		802
	General and administrative expense	—		1		—

Total		$	9,763	$	5,962	$	3,201

Variable lease cost primarily related to operating expenses associated with the Company’s operating leases. There was $0.3 million and $0 short-term lease cost during the years ended September 30, 2022, and 2021, respectively.

The following table presents maturities of operating lease liabilities on an undiscounted basis as of September 30, 2022:


Year	Amounts
	(in thousands)
2023	$	5,802
2024	8,094
2025	11,800
2026	12,138
2027	11,297
2028 and thereafter	102,813
Total	$	151,944
Less imputed interest	(70,368)
Total operating lease liabilities	$	81,576

Supplemental cash flow and other information related to leases was as follows:


	Year Ended September 30,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands)	$	4,500		$	3,100

Weighted-average remaining lease term (in years)	7			8
Weighted-average discount rate	8.5		%	8.5		%