The Company leases its headquarters with its main offices and laboratory facilities in Redwood City and San Carlos, California.

In September 2022, the Company entered into a thirty-month sublease agreement for office space located at 900 Middlefield Road, 4th Floor, Redwood City, California, which commenced in January 2023 and expires in July 2025. In connection with the sublease, the Company made a security deposit of $2.1 million which is included in other assets on the balance sheet at March 31, 2023. The Company recognized a right-of-use asset and liability of $6.0 million, discounted at 11.5%, the Company’s estimated incremental borrowing rate, during the three months ended March 31, 2023.

In November 2021, the Company entered into a four-year lease for additional lab space located at 1585 Industrial Road, San Carlos, California which commenced in January 2023 and expires in January 2027. Under the provisions of the agreement, upon the commencement date, the term of the lab space located at 1599 Industrial Road, San Carlos, California (1599 lease), was also extended

from April 2026 to January 2027. The lease included 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, 2023. As the term of the 1599 lease was extended, this did not result in a separate contract, accordingly, the Company remeasured the right-of-use asset and liability totaling to $7.8 million under one lease, discounted at 11.4%, the Company’s estimated incremental borrowing rate, during the three months ended March 31, 2023. In addition, the Company is eligible for a tenant improvement allowance of up to $1.4 million which will be accounted for as a lease incentive if utilized. There has been no lease incentive paid nor payable as of March 31, 2023.

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


	March 31,
	2023		2022
Cash paid for operating lease liabilities	$	840	$	173
Operating lease costs		980		178
Short-term lease cost		—		753
Variable lease costs		245		141

The maturities of lease liabilities as of March 31, 2023 were as follows (in thousands):


	Operating Lease
Year Ending December 31,	Commitments
2023 (remaining nine months)	$	2,957
2024		4,054
2025		2,757
2026		1,380
2027		1,431
Thereafter		6,300
Total future undiscounted lease payments		18,879
Less: Imputed interest		(5,533	)
Total operating lease liabilities	$	13,346
Operating lease liabilities, current		2,611
Operating lease liabilities, non-current		10,735
Total operating lease liabilities	$	13,346