COMMITMENTS

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

COMMITMENTS

Leases

Sangamo occupies approximately 87,700 square feet of office and research and development laboratory facilities in Brisbane, California, pursuant to a lease that expires in May 2029. Sangamo also occupies approximately 59,200 square feet of research and office space in Richmond, California, pursuant to leases that expire in August 2026. In addition, the Company leases approximately 25,600 square feet of office, and research and development space in Valbonne, France, subject to leases that expire beginning in June 2025 through January 2030.

Certain of these leases include renewal options at the election of the Company to renew or extend the lease for an additional five to ten years. These optional periods have not been considered in the determination of the ROU assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain that it would exercise the options.

The Company performed evaluations of its contracts and determined each of its identified leases are operating leases. For the three months ended March 31, 2021 and 2020, the Company incurred $2.7 million and $2.6 million, respectively, of lease costs in relation to these operating leases. These lease costs were included in operating expenses in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2021 and 2020, variable lease expenses were $0.7 million and $0.5 million, respectively, and were not included in the measurement of the Company’s operating ROU assets and lease liabilities. This variable expense consists primarily of the Company’s proportionate share of operating expenses, property taxes and insurance and is classified as lease expense, due to the Company’s election to not separate lease and non-lease components.

Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2021 and 2020, was $1.7 million and $1.6 million respectively, and was included in net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.

As of March 31, 2021, the maturities of the Company’s operating lease liabilities were as follows (in thousands):

	Total
Nine months ending December 31, 2021:	$	4,663
2022	6,991
2023	7,089
2024	7,237
2025	7,308
Thereafter	20,037
Total lease payments	53,325
Less:
Imputed interest	(10,980)
Total	$	42,345
Reported as of March 31, 2021:
Operating lease liabilities - current (included in other accrued liabilities on the Condensed Consolidated Balance Sheet)	$	3,882
Operating lease liabilities - long-term	38,463
Total	$	42,345

As of March 31, 2021, the weighted-average remaining lease term is 7.5 years and the weighted-average incremental borrowing rate used to determine the operating lease liability was 6.2% for the Company’s operating leases.

In January 2021, the Company entered into an amendment to an existing lease to acquire approximately 5,000 square feet of research and office space in Richmond, California. With this amendment, the existing lease expires in August 2026. Total lease payments over the life of this amended lease are approximately $0.9 million. Variable lease payments include the Company’s allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building. On February 1, 2021, the lease commencement date, the Company recorded an operating lease right-of-use asset and a corresponding lease liability of $0.7 million.

In January 2021, the Company also entered into a new lease to acquire approximately 5,800 square feet of research and office space in Valbonne, France, that expires in January 2030. Total lease payments over the life of this amended lease are approximately $0.8 million. Variable lease payments include the Company’s allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building. On January 29, 2021, the lease commencement date, the Company recorded an operating lease right-of-use asset and a corresponding lease liability of $0.6 million.

The Company does not have any financing leases.

Contractual Commitments

The following table sets forth the non-cancelable material contractual commitments under manufacturing-related supplier arrangements as of March 31, 2021 (in thousands):

Party	Total commitments		Expiry date
Brammer Bio MA - a Thermo Fisher Scientific Inc. subsidiary	$	6,157	December 2021
Lonza Netherlands, B.V.	11,804		December 2022
Total contractual commitments	$	17,961

The Company also had $0.9 million of license obligations related to its intellectual property as of March 31, 2021.