In December 2016, the Company entered into a lease agreement for office and laboratory space in South San Francisco, California. The lease expires in May 2025 and the Company may renew the lease term for two additional five-year periods.

In February 2021, the Company entered into a lease agreement for the Union City Facility. The lease commenced in May 2021 and has a ten-year term with one five-year renewal option. Upon the execution of the lease agreement, the Company provided the landlord with a refundable security deposit of $3.3 million, which was included in other noncurrent assets on the balance sheets.

In November 2021, the Company entered into a short-term sublease agreement for additional office and laboratory space in South San Francisco, California with a lease term that was initially set to expire on June 30, 2022. In May 2022, the Company entered into an amendment to extend the term for the existing sublease premise through December 31, 2022. The amendment also included an additional term whereby the Company subleases additional office and laboratory space at the same sublease premise through November 30, 2023.

Information related to operating lease activity during the three and nine months ended September 30, 2022 was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Operating lease cost	$	1,090	$	702	$	2,624	$	1,662
Variable lease cost		319	$	306		910	$	796
Short-term lease cost		244		585		709		1,755
Total lease cost	$	1,653	$	1,593	$	4,243	$	4,213

Operating lease-right-of-use assets obtained in exchange for lease obligations					$	2,224	$	8,558
Cash paid for leases included in operating cash outflows					$	4,597	$	4,423
Cash paid for amounts included in the measurement of lease liabilities					$	2,978	$	1,872

As of September 30, 2022, the Company's operating leases had a weighted average remaining lease term of 5.7 years and a weighted average discount rate of 9.2%. Future minimum lease payments under the Company’s operating leases as of September 30, 2022 were as follows:


	Amount
	(In thousands)
2022 (remaining 3 months)	$	1,315
2023		5,223
2024		3,910
2025		2,445
2026		1,386
Thereafter		6,905
Total undiscounted future minimum lease payments	$	21,184
Imputed interest		(5,125	)
Total operating lease liabilities	$	16,059

Under the lease agreement for the manufacturing and office facility in Union City, the Company is contractually obligated to remove constructed leasehold improvements related to capitalized machinery and equipment (see Note 4) and to restore the leased space to its original condition upon termination of the lease agreement. As of September 30, 2022, the balance of the asset retirement obligation liability was not material.

The Company enters into contractual agreements with various suppliers in the normal course of its business, including vendors that provide machinery and equipment. All contracts are terminable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would only be obligated for the products or services that the Company had received through the time of termination.

From time to time, the Company may become involved in litigation and other legal actions. The Company estimates the range of liability related to any pending litigation where the amount and range of loss can be estimated. The Company records its best estimate of a loss when the loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and (ii) the range of loss can be reasonably estimated. The Company was not involved in any material litigation as of September 30, 2022.

In the normal course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amounts of future payments the Company could be required to make under these provisions is not determinable. In addition, the Company has entered into indemnification agreements with its directors and certain officers that may require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. As of September 30, 2022 and December 31, 2021, the Company did not have any material indemnification claims that were probable or reasonably possible and, consequently, has not recorded any related liabilities.