Leases

3 Months Ended

Mar. 31, 2022

5. Leases

The Company has a single operating lease for its corporate headquarters and laboratory space in San Diego, California. The lease expires in July 2025 and the Company has an option to extend the term of the lease for an additional five years. Additionally, the lease includes certain rent abatement, rent escalations, tenant improvement allowances and additional charges for common area maintenance and other costs.

The components of lease expense included in the Company’s condensed consolidated statements of operations include (in thousands):


	Three Months Ended March 31,
	2022		2021
	(unaudited)
Operating lease expense	$	261	$	261
Variable lease expense		132		128
Total lease expense, net	$	393	$	389

Variable lease costs are primarily related to payments made to lessors for common area maintenance, property taxes, insurance, and other operating expenses. The Company did not have any short-term leases or finance leases for the three months ended March 31, 2022 or 2021, respectively.

The weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2022 and 2021 were as follows:


	Three Months Ended March 31,
	2022			2021
	(unaudited)
Weighted average remaining lease term (in years)		3.25			4.25
Weighted average discount rate percentage		3.50	%		3.50	%

Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands):


	Three Months Ended March 31,
	2022		2021
	(unaudited)
Cash paid for amounts included in the measurement of operating leases	$	377	$	316

As of March 31, 2022, future minimum payments under the Company's non-cancelable operating lease under ASC 842 were as follows (in thousands):


	Operating lease
Nine months ending December 31, 2022	$	1,178
2023		1,636
2024		1,685
2025		845
Thereafter		—
Total future lease payments		5,344
Less: imputed interest		(304	)
Total operating lease liabilities	$	5,040