Leases
Operating Leases
The Company leases certain office space, laboratory facilities, and equipment in North Carolina and Texas. These leases require monthly lease payments that are subject to annual increases throughout the lease term.
The following table summarizes the Company’s recognition of its operating leases (in thousands):
| | | | | | | | | | | | | | |
| | December 31, |
| Balance Sheet Classification | | 2025 | | 2024 |
| Other assets | | $ | 1,337 | | | $ | 1,843 | |
| Accrued expenses and other current liabilities | | $ | 837 | | | $ | 900 | |
| Non-current operating lease liabilities | | 1,584 | | | 2,506 | |
| Total liabilities | | $ | 2,421 | | | $ | 3,406 | |
The following table summarizes the weighted-average remaining lease term and discount rates for the Company’s operating leases:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Lease term (years) | 2.5 | | 3.5 |
| Discount rate | 8.6 | % | | 8.6 | % |
The Company incurred rent expense for its operating leases of $0.8 million for the years ended December 31, 2025 and 2024 which is included within operating expenses in the statements of operations and comprehensive loss. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2025 and 2024 was $1.1 million and was included in net cash used in operating activities in the statement of cash flows.
In February 2026, the Company renewed its lease for its Austin, Texas office location. The renewal results in future fixed cash payments of $0.2 million in 2027, $0.2 million in 2028, and $0.3 million in 2029.
The maturities of the Company’s operating lease liabilities as of December 31, 2025 were as follows (in thousands):
| | | | | |
| 2026 | $ | 1,006 | |
| 2027 | 848 | |
| 2028 | 874 | |
| 2029 | — | |
| 2030 | — | |
| Thereafter | — | |
| Total lease payments | 2,728 | |
| Less imputed interest | (307) | |
| Lease liability | $ | 2,421 | |
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.