We lease certain office space under a non-cancelable operating lease. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives or other build-out clauses. Further this lease does not contain contingent rent provisions. This lease terminates on August 31, 2022 and we do not have an option to renew. This lease does include both lease (e.g., fixed rent) and non-lease components (e.g., common-area and other maintenance costs). The non-lease components are deemed to be executory costs and are therefore excluded from the minimum lease payments used to determine the present value of the operating lease obligation and related right-of-use asset.

Our operating lease cost and variable lease costs were $32,000 and $26,000, respectively, for the six months ended June 30, 2022. Variable lease costs consist primarily of common area maintenance costs, insurance and taxes which are paid based upon actual costs incurred by the lessor.

Maturities of our operating lease obligation are as follows as of June 30, 2022 (in thousands):

New office lease

In June 2022, we entered into an agreement to lease approximately 6,000 square feet of office space in Minneapolis, MN, near our current office space. The lease commencement date is expected to coincide with the initiation of the lease term on September 1, 2022. The lease term is 65 months, expiring on January 31, 2028.  The aggregate base rent due over the initial term under the terms of the lease agreement is approximately $608,000, without giving effect to certain rent abatement terms. We will also be responsible for the payment of variable lease costs covering certain common area maintenance costs, insurance and taxes. The lease includes a one-time 5-year renewal option at the market rate following the initial lease term. We intend to relocate our principal executive officers, together with our research and development operations, to this office space on September 1, 2022 following the expiration of the lease described above.