Leases
On May 29, 2024, the Company and Mountain View City Center, LP (“Landlord”) entered into a lease agreement (the “2024 Lease Agreement”) for 16,332 square feet of office space in a multi-tenant building located in Mountain View, California with an initial lease term of 65 months. Including payments already made, the Company will make payments of approximately $7.1 million over the course of the initial term of the lease. In connection with the 2024 Lease Agreement, the Company secured a letter of credit amounting to $0.5 million, which was recorded in restricted cash on its consolidated balance sheet as of December 31, 2025 and 2024. At the Company’s option, it may renew the lease for one three-year period. The Company also has a one-time option to terminate the lease after the third lease year. If the Company elects to terminate the lease after the third lease year, including payments already made, the Company will make payments of approximately $4.0 million over the term of the lease.
The Company obtained control of the space in September 2024, and, accordingly, the Company recorded the liability associated with the 2024 Lease Agreement at the present value of the lease payments not yet paid, using the discount rate as of the commencement date. As the discount rate implicit in the 2024 Lease Agreement was not readily determinable, the
Company utilized its incremental borrowing rate. The renewal or early termination options were not assumed to be exercised in the determination of the lease term, since they are not deemed to be reasonably certain at the inception of the lease. At lease commencement, the Company recorded an operating right-of-use asset and lease liability of $5.2 million.
The 2024 Lease Agreement does not contain material residual value guarantees, restrictions, or covenants.
The components of lease expense were as follows for the years ended December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | |
| Operating lease expense | $ | 1,225 | | | $ | 551 | | | |
| Variable lease expense | 269 | | | 53 | | | |
| Total lease expense | $ | 1,494 | | | $ | 604 | | | |
Short-term lease costs were not material for the years ended December 31, 2025 and 2024.
Supplemental cash flow information related to operating leases for the years ended December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 863 | | | $ | 76 | | | |
In addition to the above, during the year ended December 31, 2024, the Company made $0.1 million of payments related to a lease agreement for its former office space in Los Altos, California, which concluded in the second quarter of 2024.
Supplemental balance sheet information related to operating leases as of December 31, 2025 and 2024 was as follows (in thousands):
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating lease right-of-use assets | $ | 4,261 | | $ | 5,035 |
| Operating lease liability—current portion (included in accrued expenses and other current liabilities) | 1,151 | | 870 |
| Operating lease liability—long-term | 3,823 | | 4,516 |
| Total operating lease liabilities | $ | 4,974 | | $ | 5,386 |
| Weighted average remaining lease term (in years) | 4.3 | | 5.3 |
| Weighted average discount rate | 9.71 | % | | 9.71 | % |
As of December 31, 2025, the future payments under operating leases were as follows (in thousands):
| | | | | |
| 2026 | $ | 1,216 | |
| 2027 | 1,456 | |
| 2028 | 1,500 | |
| 2029 | 1,545 | |
| 2030 | 432 | |
| Thereafter | — | |
| Total lease payments | 6,149 | |
| Less: imputed interest | (1,175) | |
| Present value of lease payments | $ | 4,974 | |