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.

On June 27, 2023, the Company executed an amended lease agreement for its corporate headquarters lease in Emeryville, California with the same counterparty, in a different location in the same building to replace its existing lease expiring in July 2023. The amended lease agreement has a term of 65 months and has an expected commencement date in the fourth quarter of 2023. Undiscounted future rent payments associated with the new lease through the 65-month term is expected to be $0.5 million. Under the amended lease agreement, the Company retains access to its existing premises under the lease which expired in July 2023 until the new premises are available. Payments made between when the lease expired in July 2023 and the commencement date of the new premises are recorded as variable lease costs.

As of December 31, 2022, the total net lease liability was $34,000. There was no net lease liability as of September 30, 2023.

The following table summarizes the cost components of the Company’s operating lease for the three and nine months ended September 30, 2023 and 2022 (in thousands):

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The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):

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The present value assumptions used in calculating the present value of the lease payments for the Company’s operating lease as of September 30, 2023 and December 31, 2022 were as follows:

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