Leases

12 Months Ended

Dec. 31, 2024

6. Leases

The Company recognizes right-of-use assets (“ROU assets”) and operating lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than 12 months. The Company adopted the short-term accounting election for leases with a duration of less than one year. The Company leases its facilities and certain IT and office equipment under non-cancellable operating leases. All of the Company’s leasing arrangements are classified as operating leases with remaining lease terms ranging from one to five years. In March 2024, the Company terminated the existing lease for its California facility and concurrently executed a new lease that effectively extended the term of the lease for five years, which has been accounted for as a lease modification. The ROU asset and operating lease liability were remeasured at the modification date, resulting in an increase to both balances of $1.0 million during the year ended December 31, 2024. There were no lease modifications during the year ended December 31, 2023.

Operating lease costs were $0.5 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $0.5 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the weighted average incremental borrowing rate was 12.18% and 8.60%, respectively, and the weighted average remaining lease term was 4.1 years and 2.0 years, respectively.

The following table summarizes the Company’s operating lease maturities as of December 31, 2024 (in thousands):

Years ending December 31:
2025	$	463
2026		334
2027		290
2028		301
2029		232
Total remaining lease payments		1,620
Less: imputed interest		(373	)
Total lease liabilities	$	1,247

With respect to lease and non-lease components, the Company adopted the practical expedient to account for the lessee arrangement as a single lease component.