5. Operating Leases

In June 2023, the Company entered into a lease agreement for approximately 44,000 square feet of laboratory and office facilities at 5000 Shoreline Court, South San Francisco, California. The lease term is 120 months, and the Company has an option to extend the lease term for a total of two consecutive five-year periods. This lease agreement commenced in August 2024.

In May 2024, the Company amended its 5000 Shoreline Court facility lease agreement to expand the size of the original premises by adding approximately 11,321 rentable square feet of additional space. The amendment to the lease term commenced in January 2025.

The Company's lease at 7000 Shoreline Court, South San Francisco, California, expired in September 2024.

In November 2023, the Company entered into a lease agreement for approximately 5,700 square feet of space at 11710 El Camino Real, San Diego, California for corporate office space. The lease term commenced in December 2023 and expires in March 2028. The Company has an option to renew the lease for three years.

 

Future minimum lease payments under operating leases included on the Company's balance sheet are as follows:

 

 

 

As of

 

(in thousands)

 

December 31, 2025

 

2026

 

$

1,944

 

2027

 

 

5,379

 

2028

 

 

5,248

 

2029

 

 

5,323

 

2030

 

 

5,509

 

Thereafter

 

 

22,955

 

Total future minimum lease payments

 

 

46,358

 

Less: imputed interest

 

 

(18,444

)

Total operating lease liabilities

 

$

27,914

 

 

The following table summarizes other information about the Company's operating leases:

 

 

 

As of December 31,

 

 

2025

 

2024

Weighted-average remaining lease term

 

8.6

 

9.4

Weighted-average discount rate

 

11.5%

 

12.6%

 

Operating lease costs were $5.0 million, $1.9 million and $1.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Variable lease costs were $2.2 million, $1.1 million, and $1.4 million for the years ended December 31, 2025, 2024, and 2023, respectively. Variable lease costs represent additional costs incurred, related to administration, maintenance and property tax costs incurred, which are billed based on both usage and as a percentage of the Company's share of total square footage.

 

During the years ended December 31, 2025, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $0.4 million, $1.7 million and $2.0 million, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Mar 7, 2023
2021Mar 18, 2022
2020Mar 23, 2021
2019Mar 24, 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.