Leases

3 Months Ended

Mar. 31, 2023

6. Leases

In June 2021, the Company entered into a facility lease agreement for its company headquarters in Los Gatos, California. This non-

cancellable

operating lease expires in June 2026. The Company includes options that are reasonably certain to be exercised as part of the determination of lease terms. The Company may negotiate termination clauses in anticipation of any changes in market conditions, but generally these termination options are not exercised. Residual value guarantees are generally not included within operating leases. In addition to base rent payments, leases may require the Company to pay directly for taxes and other non-lease components, such as insurance, maintenance, and other operating expenses, which may be dependent on usage or vary month-to-month. Non-lease components were considered and determined not to be material. The Company determined if an arrangement is a lease at inception of the contract and performed the lease classification test as of the lease commencement date. R

ight-of-use

assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease

ight-of-use

assets and liabilities are recognized at the lease’s commencement date based on the present value of lease payments over the lease term. When a lease did not provide an implicit rate, the Company used its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments.

Operating lease costs for the facility lease were $73 and $135 for the three months ended March 31, 2023 and 2022, respectively. Lease costs are included in general and administrative expenses in the

condensed

consolidated statements of operations and comprehensive loss.

Supplemental balance sheet information related to leases was as follows:

	March 31,			December 31,
	2023			2022
Operating lease right-of-use assets	$	818		$	873

Operating lease liability, current	$	(235	)	$	(228	)
Operating lease liability, noncurrent		(622	)		(683	)
Total operating lease liabilities	$	(857	)	$	(911	)

Future maturities of operating lease liabilities as of March 31, 2023 were as follows:

2023	$	221
2024		301
2025		310
2026		144
Total lease payments		976
Less: imputed interest		(119	)
Present value of operating lease liabilities	$	857

Other information:

Cash paid for operating leases for the three months ended March 31, 2023	$	72
Cash paid for operating leases for the three months ended March 31, 2022	$	70
Remaining lease term - operating leases (in years)		3.25
Average discount rate - operating leases		8.0	%