The Company leases real estate, primarily laboratory, office and manufacturing space. The Company’s leases have remaining terms ranging from approximately two to ten years. Certain leases include one or more options to renew, exercisable at the Company’s sole discretion, with renewal terms that can extend the lease from approximately one year to five years. The Company evaluated the renewal options in its leases to determine if it was reasonably certain that the renewal option would be exercised, given the Company’s current business structure, uncertainty of future growth, and the associated impact to real estate, the Company concluded that it is not

reasonably certain that any renewal options would be exercised. Therefore, the operating lease assets and operating lease liabilities only contemplate the initial lease terms. All the Company’s leases qualify as operating leases.

In April 2022, the Company entered into a lease for additional laboratory and office space in Spring House, Pennsylvania, with a lease term of ten years and a renewal option, subject to certain conditions, for an additional five-year term. The undiscounted minimum lease payments are $2,991, net of a tenant improvement allowance of $1,223, over the original ten-year term. The lease commenced in April 2023, at which point, the Company recorded a right-of-use asset of $3,546, which consists of the lease liability of $1,210, and $2,336 of leasehold improvements that revert back to the lessor at the termination of the lease.

In June 2023, the Company entered into a lease for a donor collection facility in Irvine, California, with a lease term of seven years and a renewal option, subject to certain conditions, for an additional five-year term. The undiscounted minimum lease payments are $1,084 over the original seven-year term. As of June 30, 2023, the lease has not yet commenced, and accordingly the Company has not recorded a right-of-use asset or a lease liability with respect thereto.

The following table summarizes the presentation in the Company’s condensed consolidated balance sheets of its operating leases (in thousands):


	June 30, 2023		December 31, 2022
Assets:
Operating lease assets	$	110,283	$	110,984

Liabilities:
Operating lease liabilities	$	5,470	$	3,601
Operating lease liabilities, net of current portion		106,706		107,942
Total operating lease liabilities	$	112,176	$	111,543

The following table summarizes the effect of lease costs in the Company’s consolidated statements of operations and comprehensive income (loss) (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating lease costs	$	5,543	$	1,948	$	10,953	$	3,620
Short-term lease costs		372		354		740		709
Variable lease costs		2,180		1,271		3,943		2,302
Total lease costs	$	8,095	$	3,573	$	15,636	$	6,631

During the three and six months ended June 30, 2023 and 2022, the Company made cash payments for operating leases of $3,875, $7,289, $1,332, and $3,445 respectively.

As of June 30, 2023, future payments of operating lease liabilities are as follows (in thousands):


	As of June 30, 2023
2023 (remaining 6 months)	$	8,600
2024	$	19,437
2025	$	21,555
2026	$	22,155
2027 and thereafter	$	111,164
Total future minimum lease payments	$	182,911
Less: interest		(70,735	)
Present value of operating lease liabilities	$	112,176

As of June 30, 2023, the weighted average remaining lease term was 8.47 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 13%. As of June 30, 2022, the weighted average remaining lease term was 4.75 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 10%.