4. Leases

As a lessee, the Company’s current lease includes its master facility lease which is considered an operating lease.

Master Facility Lease

The Company currently leases office and lab space in San Diego that expires on February 28, 2027. The lease currently requires monthly payments of approximately $67,000 per month with 3% annual escalation.

The components of lease expense were as follows:

 

(in thousands)

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Operating lease cost

 

$

620

 

 

$

667

 

 

 

Supplemental balance sheet information related to leases was as follows:

 

(in thousands)

 

As of December 31,2025

 

 

As of December 31,2024

 

Operating lease ROU assets

 

$

629

 

 

$

1,169

 

Current operating lease liabilities

 

$

730

 

 

$

710

 

Non-current operating lease liabilities

 

 

102

 

 

 

813

 

Total operating lease liabilities

 

$

832

 

 

$

1,523

 

Weighted-average remaining lease term–operating leases

 

1.2 years

 

 

2.2 years

 

Weighted-average discount rate–operating leases

 

 

7

%

 

 

7

%

 

Supplemental cash flow and other information related to leases was as follows:

 

(in thousands)

 

For the Year
Ended December 31,

 

 

 

2025

 

 

2024

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Cash paid included in operating cash flows

 

$

777

 

 

$

756

 

 

Total remaining annual commitments under non-cancelable operating lease agreements as of December 31, 2025, are summarized are as follows:

 

(in thousands)

 

 

 

Year Ending December 31,

 

Operating Leases

 

2026

 

$

730

 

2027

 

 

136

 

Total future minimum lease payments

 

 

866

 

Less imputed interest

 

 

(34

)

Total

 

$

832

 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Mar 2, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020

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.