On September 28, 2023, the Company entered into a lease agreement with HCP BTC, LLC, a Delaware limited liability company (“the Landlord”) for a premise consisting of approximately 100,904 square feet of office and laboratory space located at Oyster Point Blvd, South San Francisco, California (the “Oyster Point Lease”), which the Company intends to use as single unified Company headquarters. The lease term of approximately seven years will start upon the Landlord’s substantial completion of tenant improvements, and may be extended for a period of eight years at then prevailing market rates for a comparable property. Future lease payments are approximately $43.7 million which represent the non-cancellable periods of the lease. We excluded extension options that are not reasonably certain to be exercised from our lease terms. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease term. Additionally, the Company provided a letter of credit to the Landlord in the amount of $1.4 million in connection with the Oyster Point Lease, which has been recognized as restricted cash as at March 31, 2024.

Though the Oyster Point Lease will be accounted for as a single contract, the office space was occupied in March 2024 while the laboratory space is expected to be occupied in the second quarter of 2024. Accordingly, the Company measured and allocated consideration to each lease component as of March 31, 2024. The Company has recognized a right-of-use asset ("ROU") or aggregate lease liability of $23.7 million as at March 31, 2024, discounted at 9.23%, the Company's estimated incremental borrowing rate during the three months ended March 31, 2024.


	Operating Lease
2024 (remainder of the year)	$	2,037
2025	2,849
2026	3,537
2027	4,735
2028	5,996
2029 and thereafter	16,718
Total undiscounted lease payments	$	35,872
Less: Present value discount	(11,219)
Total operating lease liabilities current	$	773
Total operating lease liabilities non-current	$	23,880