Note 14. Leases

In January 2017, the Company entered into a lease agreement for 32,000 rentable square feet of office space located at 85 School Street, Watertown, Massachusetts. The lease term, which commenced in June 2017, was set to expire August 1, 2023. In August 2017, the Company entered into the First Amendment of the lease which extended the maturity date to January 31, 2024.

In November 2020, the Company entered into a lease agreement for 36,291 rentable square feet of office space on the 1st floor of the building located at 480 Pleasant Street, Watertown, Massachusetts. The lease term, which commenced in November 2020, is set to expire July 31 2028, with lease payments being made on a monthly basis. There is also an option to extend for 2 additional periods of 5 years, which is not reasonably certain to be exercised and therefore not included in the measurement of the lease.

In March 2019, the Company entered into a lease agreement for 25,000 rentable square feet of office space in the building located at 900 Middlesex Turnpike, Billerica, Massachusetts. The lease term, which commenced in July 2019, was set to expire July 1, 2026, with an option to extend for 2 additional periods of 5 years each, and required monthly payments. In December 2021, the Company entered into the First Amendment of the lease and expanded the office space by approximately 21,902 rentable square feet and extended the maturity date to May 31, 2029 (“Expansion Premises”). The Expansion Premises has not been made available to the Company as of March 31, 2022 and is therefore not included in the table below, as the lease term for the Expansion Premises has not commenced. The Expansion Premises is expected to commence in the second quarter of 2022. At lease commencement, the classification and measurement of the Expansion Premises will be determined and recognized on the balance sheet. The annual base rent for the Expansion Premises per the lease agreement is approximately $0.4 million for the first lease year, expected to begin in the first half of 2022, and is subject to annual increases of 3% thereafter. The undiscounted future minimum rent obligation is approximately $2.6 million.

Rent expense under the Company’s operating lease agreements was $0.6 million for the three months ended March 31, 2022 and 2021. There were not any financing, variable, or short term leases during the three months ended March 31, 2022 and 2021. Future minimum lease payments under these agreements are as follows as of the date of March 31, 2022:

In December 2021, the Company entered into a lease agreement for 120,681 rentable square feet of office space located at 60 Tower Road, Waltham, Massachusetts (the “Premises”). The Premises has not been made available to the Company as of March 31, 2022 and is therefore not included in the table above, as the lease has not yet commenced. The lease term, which commences April 1, 2022, is set to expire September 30, 2031. At lease commencement, the classification and measurement of the lease will be determined and recognized on the balance sheet. The annual base rent under the lease is approximately $4.8 million for the first lease year, expected to commence in July 2022, and is subject to fixed annual increases. The undiscounted future minimum rent obligation is approximately $49.3 million. Per the lease agreement, the Company will provide a security deposit in the form of a letter of credit in the amount of approximately $0.8 million.