7. Restricted Cash

As of December 31, 2023 and 2022, the Company had $2.1 million and $3.1 million, respectively, in restricted cash, which was classified as long-term on the Company’s consolidated balance sheets, and all of which was attributable to the HQ Lease (as defined in Note 11).

In connection with the execution of the HQ Lease, the Company was required to provide the landlord with a letter of credit in the amount of $3.1 million that will expire 95 days after expiration or early termination of the HQ Lease. Pursuant to the HQ Lease, the Company exercised its right to reduce the amount of the letter of credit to $2.1 million during the year ended December 31, 2023.