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Operating Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Operating Leases

5. Operating Leases

The Company leases its laboratory and office facilities in South San Francisco, California under a non-cancelable operating lease with expiration date in July 2024 (“Original Lease”).

On September 30, 2019, the Company and the landlord of the laboratory and office facilities in South San Francisco entered into a second amendment (“Second Amendment”) to lease additional office spaces at the same location. The Company accounts for the Second Amendment as a separate contract and recognized a related right-of-use (“ROU”) asset and lease liability of $1.2 million on the lease commencement date in August 2020.

 

The maturities of operating lease liabilities as of December 31, 2020 are as follows (in thousands):

 

As of December 31, 2020

 

Operating Leases

 

2021

 

 

1,930

 

2022

 

 

1,982

 

2023

 

 

2,036

 

2024

 

 

1,647

 

Total lease payments

 

 

7,595

 

Less: Interest

 

 

(872

)

Present value of lease liabilities

 

$

6,723

 

Amounts recognized on the balance sheet

 

 

 

 

Current lease liabilities

 

$

1,540

 

Long-term lease liabilities

 

 

5,183

 

Total lease liabilities

 

$

6,723

 

 

Operating lease cost was $1.5 million and $1.5 million for the years ended December 31, 2020 and December 31, 2019, respectively.

As of December 31, 2020, the ROU assets of $5.2 million are included in non-current assets on the balance sheet, and lease liabilities of $6.7 million are included in current liabilities and non-current liabilities on the balance sheet.

As of December 31, 2020, the remaining term for the operating lease in South San Francisco, California is 3.6 years, and the discount rate used to measure the lease liability for such operating lease upon recognition is 7.0% for the Original Lease and 6.0% for the Second Amendment. The Company has one right to extend the lease term of the operating lease in South San Francisco for two years by giving the landlord written notice. The remaining term does not include the additional two years, as the Company assessed at commencement date that it was not reasonably certain to extend the lease term.

During the years ended December 31, 2020 and December 31, 2019, cash paid for amounts included in operating lease liabilities of $1.7 million and $1.7 million, respectively, is included in cash flows from operating activities on the statement of cash flows.