Leases

6 Months Ended

Jun. 30, 2023

Leases

Leases

10. Leases

The Company leases approximately 33,000 square feet of research and office space for its corporate headquarters under a non-cancelable operating lease. In May 2023, the Company amended our lease, extending the lease term through May 31, 2033, and obtained a tenant improvement allowance of $1.3 million. The Company accounted for the amendment as a lease modification and remeasured the ROU asset and lease liability as of the amendment date, which resulted in an increase of $2.5 million to the ROU asset, and an increase of $3.8 million to the lease liability. The Company has one option to extend the term for an additional period of five years beginning on June 1, 2033. The rent expense is recognized on a straight-line basis through the end of the lease term, excluding option renewals. The difference between the straight-line rent amounts and amounts payable under the lease is recorded as deferred rent.

Operating lease expense for the six months ended June 30, 2023 and 2022 was $0.4 million and $0.3 million, respectively.

The following table summarizes the lease assets and liabilities as of June 30, 2023 and December 31, 2022 (in thousands):

				June 30,		December 31,
Operating Lease Assets and Liabilities	Balance Sheet Classification		2023		2022
Assets
Operating lease ROU assets		Deposits and other assets	$	5,340	$	3,032
Tenant improvement allowance receivable		Deposits and other assets		1,312		—
Liabilities
Current operating lease liabilities		Accrued expenses and other current liabilities	$	483	$	725
Non-current operating lease liabilities		Other non-current liabilities		6,408		2,689
Total operating lease liabilities			$	6,891	$	3,414

The following table summarizes the maturity of undiscounted payments due under operating lease liabilities and the present value of those liabilities as of June 30, 2023 (in thousands):

2023 (remaining 6 months)	$	594
2024		912
2025		939
2026		967
2027		996
Thereafter		5,934
Total		10,342
Less: Present value adjustment		(3,451)
Present value of lease liabilities	$	6,891

The following table summarizes the weighted-average lease term and weighted-average discount rate as of June 30, 2023:

Remaining lease term (years)	2023
Operating leases	9.7
Discount rate
Operating leases	8.5	%