Commitments and ContingenciesLegal Proceedings
From time to time, the Company may be a party to litigation or subject to claims in the ordinary course of business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company was not a party to any material litigation and did not have contingency reserves established for any liabilities as of December 31, 2025 or 2024.
Leases
In February 2025, we relocated our corporate headquarters to a new location in San Diego, California. This operating lease for the new corporate headquarters is for 6,942 square feet of office space which expires on January 31, 2028. In the first quarter of 2025, we recognized an initial ROU lease asset of $0.9 million and a lease liability of $0.9 million related to this space in San Diego, California.
We have an operating lease for 25,476 square feet of laboratory and office space in Taicang, China, with a lease term that expires on April 30, 2027. We also had an operating lease for 3,628 square feet of office space in San Diego, California, with a lease term that expired on April 30, 2025.
As of December 31, 2025 and 2024, the weighted average remaining lease term was 2.0 years and 1.0 year, respectively, and the weighted average discount rate used to determine the operating lease liability was 8.1% and 4.8%, respectively.
Rent expense under all operating leases totaled $0.5 million and $0.3 million, respectively, for the years ended December 31, 2025 and 2024. During the years ended December 31, 2025 and 2024, we paid $0.4 million and $0.3 million, respectively, for our operating leases.
Annual future minimum lease payments as of December 31, 2025 are as follows (in thousands):
| | | | | |
| Year ended December 31: | |
| 2026 | $ | 372 | |
| 2027 | 354 | |
| 2028 | 29 | |
| Thereafter | — | |
| Total future minimum lease payments | 755 | |
| Less: amount representing interest | (65) | |
| Total lease liabilities | $ | 690 | |
Development Agreements
We enter into agreements with clinical sites and clinical research organizations for the conduct of our clinical trials and contract manufacturing organizations for the manufacture and supply of preclinical, clinical and, eventually, commercial materials and drug product. We make payments to these clinical sites and clinical research organizations based in part on the number of eligible patients enrolled and the length of their participation in the clinical trials. Under certain of these agreements, we may be subject to penalties in the event that we prematurely terminate these agreements. At this time, due to the variability associated with clinical site agreements, contract research organization agreements and contract manufacturing agreements, we are unable to estimate with certainty the future costs we will incur. We intend to use our current financial resources to fund our obligations under these commitments.