Leases
Leases
Operating Leases
The Company leases office and laboratory space located in Vista, California. The lease expires in April 2027, with an option to extend portions of the lease for additional 5-year periods. The Company has not included the optional renewal periods in the measurement of the lease liability, because it is not reasonably certain that the Company will exercise these renewal options. The Company's payments under the lease are subject to escalation clauses.
The Company leases additional office space in Carlsbad, California, under a sublease which commenced in October 2021 and expires in April 2027. Monthly base rent under the sublease agreement is $72,143. The monthly base rent increases by approximately 3% annually, each October 1, through the remainder of the lease term.
Finance Leases
The Company has entered into various finance lease agreements to obtain laboratory equipment. Additionally, the Company has an embedded finance lease related to its supply agreement for consumable products used in the Company's diagnostic biomarkers (see "Note 6. Commitments and Contingencies"). The terms of the Company's finance leases generally range from three to five years and are typically secured by the underlying equipment. The portion of the future payments designated as principal repayments were classified as finance lease liabilities on the Company's balance sheet.
Operating and Finance Leases Balances and Costs
Operating and finance leases consist of the following (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| Lease Balance | | Classification | | 2025 | | 2024 |
| Lease Assets | | | | | | |
| Operating | | Operating lease right-of-use assets | | $ | 1,435 | | | $ | 2,401 | |
| Finance | | Property and equipment, net | | $ | 3,120 | | | $ | 486 | |
| | | | | | |
| Lease Liabilities | | | | | | |
| Current | | | | | | |
| Operating | | Operating lease liabilities, current | | $ | 1,226 | | | $ | 1,096 | |
| Finance | | Finance lease liabilities, current | | $ | 1,135 | | | $ | 201 | |
| Non-current | | | | | | |
| Operating | | Operating lease liabilities, non-current | | $ | 438 | | | $ | 1,664 | |
| Finance | | Finance lease liabilities, non-current | | $ | 1,960 | | | $ | 157 | |
Costs associated with the Company's leases were included in the statements of operations as follows (in thousands):
| | | | | | | | | | | | | | |
| | Year Ended December 31, |
| Lease Cost | | 2025 | | 2024 |
| Operating leases | | | | |
Operating lease cost(1) | | $ | 1,333 | | | $ | 1,345 | |
| Finance lease cost | | | | |
| Amortization of lease assets | | 432 | | | 280 |
| Interest on finance lease liabilities | | 290 | | | 84 |
| Total lease cost | | $ | 2,055 | | | $ | 1,709 | |
(1) Includes variable lease cost of $0.2 million for each of the years ended December 31, 2025 and 2024.
Supplemental cash flow information on leases is as follows (in thousands):
| | | | | | | | | | | | | | |
| | Year Ended December 31, |
| Cash paid for amounts included in the measurement of lease liabilities | | 2025 | | 2024 |
| Operating cash out flows from operating leases | | $ | 1,277 | | | $ | 1,240 | |
| Operating cash out flows from interest paid on finance leases | | $ | 290 | | | $ | 84 | |
| Financing cash out flows from finance leases | | $ | 494 | | | $ | 490 | |
Information regarding the weighted-average lease term and weighted average discount rate are as follows:
| | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 |
| Weighted-average remaining lease term (years) | | | | |
| Operating leases | | 1.3 | | 2.3 |
| Finance leases | | 3.5 | | 1.8 |
| Weighted-average discount rate | | | | |
| Operating leases | | 8.0 | % | | 8.0 | % |
| Finance leases | | 16.1 | % | | 17.3 | % |
Future payments under operating and finance leases as of December 31, 2025 are as follows (in thousands):
| | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases |
| | | | |
| | | | |
| | | | |
| | | | |
| 2026 | | 1,315 | | | 1,235 | |
| 2027 | | 445 | | | 1,115 | |
| 2028 | | — | | | 1,087 | |
| 2029 | | — | | | 565 | |
| 2030 | | — | | | 30 | |
| | | | |
| Total minimum lease payments | | 1,760 | | | 4,032 | |
| Less: imputed interest | | (96) | | | (937) | |
| Total lease liabilities | | 1,664 | | | 3,095 | |
| Less: current portion | | (1,226) | | | (1,135) | |
| Lease obligations, net of current portion | | $ | 438 | | | $ | 1,960 | |