Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies.

Commitments and Contingencies

8. Commitments and Contingencies

Leases

Operating Leases

In May 2021, the Company entered into a lease for its headquarters (the “Headquarters Lease”), consisting of an operating lease agreement, as amended, for new office, laboratory, manufacturing and other space. The Headquarters Lease will expire on August 31, 2035. The Headquarters Lease agreement includes a landlord-provided tenant improvement allowance (“TIA”) of $6.3 million to offset the cost of construction of leasehold improvements. As of December 31, 2024, the Company had received all reimbursements from the TIA. The Company is obligated to pay its portion of real estate taxes and costs related to the leased premises, including costs of operations, maintenance, repair, replacement and management of the leased premises. Under the Headquarters Lease, the Company has three five-year options to extend the term of the lease. However, the Company is not reasonably certain to exercise any of these options, and therefore, these extension periods are not included in the lease term for accounting purposes. During the years ended December 31, 2024 and 2023, the Company paid $2,104 and $1,293 in rent pursuant to the Headquarters Lease, respectively.

The components of lease cost and balance sheet information for the Company’s lease portfolio were as follows:

	Year ended December 31,
	2024		2023
Operating lease cost	$	1,764	$	1,620
Short-term lease cost		33		39
Variable lease cost		970		983
Total lease cost	$	2,767	$	2,642

	As of December 31,		As of December 31,
	2024		2023
Operating leases
Assets
Right-of-use asset - operating leases	$	10,766	$	11,241
Liabilities
Operating lease liability, current	$	864	$	774
Operating lease liabilities, net of current portion		17,170		17,969
Total operating lease liabilities	$	18,034	$	18,743
Other information
Weighted-average remaining lease term (in years)		10.7		11.7
Weighted-average incremental borrowing rate		7.0%		7.0%

As of December 31, 2024, maturities of lease liabilities were as follows:

	Operating Leases
2025	$	2,099
2026		2,225
2027		2,281
2028		2,338
2029		2,396
2030 and thereafter		14,760
Total undiscounted lease payments		26,099
Discount factor		(8,065)
Present value of lease liabilities	$	18,034

401(k) Retirement Plan

The Company sponsors a defined-contribution 401(k) retirement plan covering eligible employees. Participating employees may voluntarily contribute up to limits provided by the Internal Revenue Code of 1986, as amended. The Company matches employee contributions equal to 50% of the salary deferral contributions, with a maximum Company contribution of 5% of the employees’ eligible compensation. In the years ended December 31, 2024 and 2023, Company matching contributions amounted to $898 and $867, respectively.