Leases

The Company has a single operating lease for its corporate headquarters and laboratory space in San Diego, California. In June 2025, the Company entered into an amendment to the lease which reduced the leased space and extended the lease term for the remaining space through November 2030. Pursuant to the amended lease, the Company also has a one-time option to extend the lease term by an additional three years. The amended lease includes certain rent abatement, rent escalations, tenant improvement allowances and additional charges for common area maintenance and other costs.

Under the relevant guidance, the Company reassessed the lease classification and remeasured the lease liability as of the effective date of modification and recognized a lease liability and ROU asset of approximately $6.0 million on the Company’s consolidated balance sheets.

The components of lease expense included in the Company’s consolidated statements of operations and comprehensive loss include (in thousands):

 

 

Years ended December 31,

 

 

 

2025

 

 

2024

 

Operating lease expense

 

$

1,311

 

 

$

1,043

 

Variable lease expense

 

 

568

 

 

 

689

 

Total lease expense, net

 

$

1,879

 

 

$

1,732

 

Variable lease costs are primarily related to payments made to lessors for common area maintenance, property taxes, insurance, and other operating expenses. The Company did not have any short-term leases or finance leases for the years ended December 31, 2025 and 2024.

The weighted average remaining lease term and weighted average discount rate for operating leases were as follows:

 

 

December 31,

 

 

 

2025

 

 

2024

 

Weighted average remaining lease term (in years)

 

 

4.9

 

 

 

0.5

 

Weighted average discount rate percentage

 

 

9.00

%

 

 

3.50

%

Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands):

 

 

Years ended December 31,

 

 

 

2025

 

 

2024

 

Cash paid for amounts included in the measurement of operating leases

 

$

967

 

 

$

1,685

 

 

Maturities of operating lease liabilities as of December 31, 2025 were as follows (in thousands):

Years ending December 31:

 

Operating
lease

 

2026

 

$

1,484

 

2027

 

 

1,528

 

2028

 

 

1,574

 

2029

 

 

1,621

 

2030

 

 

1,529

 

Total future lease payments

 

 

7,736

 

Less imputed interest

 

 

(1,536

)

Total operating lease liabilities

 

$

6,200

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 28, 2025
2023Mar 26, 2024

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.