Leases

9 Months Ended

Sep. 30, 2023

7. Leases

The Company’s leases relate primarily to office and laboratory facilities located in La Jolla, California and previously in South San Francisco, California. The Company’s lease of office space in South San Francisco expired in February 2023 and the Company did not renew that lease. The Company’s lease of laboratory space in La Jolla expires in 2025, and the Company's leases of office space in La Jolla expire in 2027. The terms of the Company’s non-cancelable operating lease arrangements typically contain fixed lease payments which increase over the term of the lease at fixed rates and include rent holidays and provide for additional renewal periods. Lease expense is recognized over the term of the lease on a straight-line basis. All of the Company’s leases are classified as operating leases. The Company has determined that periods covered by options to extend the Company’s leases are excluded from the lease term as the Company is not reasonably certain the Company will exercise such options. Operating lease expense, including expenses related to short-term leases, was $0.1 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, and $0.1 million and $0.4 million for the three and nine months ended September 30, 2022, respectively.

The Company records its right-of-use (ROU) assets within other assets (long term) and its operating lease liabilities within other current and long-term liabilities.

Additional information related to the Company’s leases as of and for the nine months ended September 30, 2023, is as follows (in thousands, except lease term and discount rate):


	September 30, 2023
Balance sheet information
Right-of-use assets	$	922
Lease liabilities, current	$	428
Lease liabilities, non-current		498
Total lease liabilities	$	926
Other information
Weighted average remaining lease term	2.47 years
Weighted average discount rate		8.25	%
Supplemental cash flow information
Operating cash flows from operating leases	$	406
Right-of-use assets obtained in exchange for lease obligations	$	—

Maturities of lease liabilities as of September 30, 2023 were as follows (in thousands):


Year ending December 31,
2023 (remaining three months)	$	120
2024		492
2025		219
2026		169
2027		28
Total undiscounted lease payments		1,028
Less: imputed interest		(102	)
Total lease liabilities	$	926

As of September 30, 2023, the Company does not have any leases that have not yet commenced that create significant rights and obligations.