|3 Months Ended|
Mar. 31, 2023
7. Lease Agreements
The Company leases one facility in Emeryville, California under an operating lease. In January 2023, the Company amended the original lease to extend the lease term five months from its original expiration of February 28, 2023 to July 31, 2023. The Company retains no option to further extend, renew or terminate the lease under the amended terms and all other material terms and conditions, including the monthly base rent, will remain consistent with the original lease.
In accordance with ASC 842, the Company accounted for the amendment to extend the lease term as a modification of the original lease and, as such, remeasured the lease liability and recognized a corresponding adjustment to the right-of-use asset of $0.1 million to reflect the changes in the lease payments due to the extended lease term.
As of March 31, 2023 and December 31, 2022 the total net lease liability was $69,000 and $34,000, respectively.
The following table summarizes the cost components of the Company’s operating lease for the three months ended March 31, 2023 and 2022 (in thousands):
(1)Under the terms of the lease agreement, the Company is also responsible for certain variable lease payments that are not included in the measurement of the lease liability. Variable lease payments include non-lease components such as common area maintenance fees.
The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):
The present value assumptions used in calculating the present value of the lease payments for the Company’s operating lease as of March 31, 2023 and December 31, 2022 were as follows:
(1)Prior to the extension of the end of the lease term from February 28, 2023 to July 31, 2023