LeasesThe Company leases space for its corporate offices and research and development facilities under non-cancellable operating leases.
As a result of the 2025 Restructuring, and in accordance with the UK facility lease agreement which allows for early termination upon notice and payment of breakage fees, the Company notified the landlord of its intention to terminate the lease. As a result, the associated lease liability and right-of-use asset were remeasured to $1.4 million and $0.4 million, respectively, reflecting the revised lease payments and term end date of January 28, 2026. The remeasurement resulted in a $6.8 million reduction to the lease liability and ROU asset.
The remaining ROU asset associated with the UK facility was assessed for impairment as part of the overall asset group. See Note 17 for further information regarding the restructuring and associated impairment of long-lived assets.
On May 15, 2025, the Company modified the terms of its existing lease for its office in New Jersey, USA. The existing lease contract was scheduled to expire on June 30, 2025. The Company extended the term of the lease by eighteen months commencing on July 1, 2025 and expiring on December 31, 2026. Accordingly, the Company remeasured its lease liability and adjusted its ROU asset based on the revised lease term.
During the third quarter of 2024, the Company modified the terms of its existing lease for its office in New Jersey, USA. The existing lease contract was scheduled to expire on November 30, 2024, including an extension option for three additional years, which at inception, the Company believed was reasonably likely to be exercised. The Company extended the term by seven months commencing on December 1, 2024 and removed the three-year extension option. Accordingly, the Company remeasured its lease liability and adjusted its ROU asset based on the revised lease term.
During the year ended December 31, 2025, the Company did not recognize any new right-of-use assets or lease liabilities, and therefore, non-cash operating lease ROU assets obtained in exchange for operating lease obligations was nil. Non-cash operating lease ROU assets obtained in exchange for operating lease obligations was $0.6 million million for the year ended December 31, 2024.
Lease costs for the years ended December 31, 2025 and 2024 are $1,171 and $1,942, respectively.
Maturities of lease liabilities are as follows:
| | | | | | | | |
| Year ending December 31, 2026 | | $ | 583 | |
| Year ending December 31, 2027 | | 166 | |
| Year ending December 31, 2028 | | 166 | |
| Year ending December 31, 2029 | | 166 | |
| Year ending December 31, 2030 | | 166 | |
| Thereafter | | 478 | |
| Total lease payments | | 1,725 | |
| Less: imputed interest | | 152 | |
| Present value of lease liabilities | | $ | 1,573 | |
Other supplemental information related to leases is summarized below:
| | | | | | | | | | | | | | | | |
| | As of December 31, |
| | 2025 | | 2024 | | |
| Weighted average remaining lease term (years) | | 6.0 | | 6.3 | | |
| Weighted average discount rate | | 3.3 | % | | 4.6 | % | | |