8. Leases

Operating Leases

The Company has an operating lease for office and laboratory space in South San Francisco, California that ends in May 2028 with an option to renew for an additional one-year term. The Company also has an operating lease for office space in San Diego, California through February 2028 with an option to renew for one period of two years.

Following contains information related to the Company's leases (in thousands, except for weighted-average information):

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

Lease costs and cash paid:

 

 

 

 

 

 

Operating lease costs

 

$

3,112

 

 

$

2,829

 

Cash paid for operating leases

 

$

3,307

 

 

$

2,919

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 Lease assets:

 

 

 

 

 

 

Right-of-use assets included in other assets

 

$

6,658

 

 

$

8,380

 

 

 

 

 

 

 

Lease liabilities:

 

 

 

 

 

 

Lease liabilities included in accrued liabilities

 

$

3,330

 

 

$

3,183

 

Lease liabilities included in other long-term liabilities

 

 

4,111

 

 

 

6,174

 

Total lease liabilities

 

$

7,441

 

 

$

9,357

 

 

 

 

 

 

 

Supplemental weighted- average information:

 

 

 

 

 

 

Weighted-average discount rate

 

 

8.4

%

 

 

8.3

%

Weighted-average remaining lease term (years)

 

 

2.3

 

 

 

3.2

 

 

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

 

Year ending December 31,

 

Operating Leases

 

2026

 

$

3,455

 

2027

 

 

3,503

 

2028

 

 

1,182

 

2029

 

 

 

2030

 

 

 

Thereafter

 

 

 

Total minimum lease payments

 

 

8,140

 

Less: interest

 

 

699

 

Present value of lease liabilities

 

$

7,441

 

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 18, 2025
2023Mar 11, 2024
2022Mar 16, 2023

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.