Leases

3 Months Ended

Mar. 31, 2023

4. 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 statements of operations and loss include (in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease expense	$	261	$	261
Variable lease expense		147		132
Total lease expense, net	$	408	$	393

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, 2023 and 2022, respectively.

The weighted average remaining lease term and weighted average discount rate for operating leases were as follows:


	As of March 31,
	2023			2022
Weighted average remaining lease term (in years)		2.25			3.25
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,
	2023		2022
Cash paid for amounts included in the measurement of operating leases	$	407	$	377

As of March 31, 2023, 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, 2023	$	1,229
2024		1,685
2025		845
Thereafter		—
Total future lease payments		3,759
Less: imputed interest		(151	)
Total operating lease liabilities	$	3,608