In August 2016, the Company entered into a lease agreement for office and lab space, which consists of approximately 32,813 square feet of rental space in South San Francisco, California. The office space lease is classified as an operating lease. The initial lease term commenced in May 2017 and ends in April 2025, with rent payments escalating each year. The Company has options to extend the lease for additional years, but the exercise of the option was not reasonably certain.

In connection with the lease, the Company maintains a letter of credit for the benefit of the landlord in the amount of $0.4 million, which is recorded as restricted cash in the consolidated balance sheets. On March 10, 2023, Silicon Valley Bank, or SVB, was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation, or FDIC, as a receiver. On March 27, 2023, First-Citizens Bank & Trust Company assumed all of SVB's customer deposits and certain other liabilities and acquired substantially all of SVB's loans and certain other assets from the FDIC. As required by the landlord, the Company replaced the letter of credit issued by SVB with a letter of credit from a different financial institution in 2023.

In January 2020, the Company entered into a lease agreement for a term of 18 months commencing June 2020 for approximately 6,478 square feet of office space. This office space lease, which was classified as an operating lease, was amended in September 2021 and expired in June 2022.

The operating lease expense for the years ended December 31, 2023 and 2022 was $1.6 million and $1.9 million, respectively. For the year ended December 31, 2023, the Company recorded an asset impairment charge of $0.1 million on its right-of-use assets. Refer to Note 3, Fair Value Measurement for more information.

Aggregate future minimum rental payments under the operating leases as of December 31, 2023, were as follows (in thousands):


Year ending December 31, 2024	$	2,670
Year ending December 31, 2025		891
Total lease payments		3,561
Less: Imputed interest		(182	)
Operating lease liabilities	$	3,379

The following represents supplemental information related to the Company’s operating leases:


	December 31,
	2023			2022
Cash paid for amounts included in the measurement of lease liabilities (in thousands)	$	2,596		$	2,743
Weighted-average remaining lease term (in years)		1.33			2.33
Weighted-average discount rate		8.48	%		8.48	%