Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

9. Leases

The Company currently leases approximately 29,000 square feet of office and laboratory space in Bothell, Washington, including 15,000 square feet of space that was added in May 2024 under an amended lease agreement, and approximately 11,000 square feet of office and laboratory space in Exton, Pennsylvania. The Bothell lease expires on January 31, 2029, and includes two five-year renewal options that are not included in the lease term as it is not reasonably certain that they will be exercised. The Exton lease expires on March 31, 2025.

Supplemental balance sheet information related to leases was as follows (in thousands):

		September 30, 2024		December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	2,388	$	1,564
Operating lease liabilities, current portion	$	257	$	310
Operating lease liabilities, net of current portion		2,464		1,340
Total operating lease liabilities	$	2,721	$	1,650

Operating lease liabilities, current portion is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets.

The Company recorded operating lease expense of $0.2 million and $0.5 million for the three and nine months ended September 30, 2024, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, respectively. Under the terms of the lease agreements, the Company is also responsible for certain variable lease payments that are not included in the measurement of the lease liability. The Company did not incur significant variable lease costs for the three and nine months ended September 30, 2024 and 2023.

Other information related to the Company’s operating leases was as follows:

	September 30, 2024	December 31, 2023
Weighted-average remaining lease term (in years)	4.16	4.81
Weighted-average discount rate	9.0%	8.3%

Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):

	Nine Months Ended September 30,
	2024		2023
Cash paid for operating lease liabilities	$	301	$	184

The Company’s future minimum lease payments were as follows as of September 30, 2024 (in thousands):

Years ending December 31,	Amount
2024 (represents remaining three months in 2024)	$	180
2025		881
2026		841
2027		862
2028 and thereafter		958
Total lease payments		3,722
Less: Imputed interest		(633)
Less: Tenant improvement allowance not yet received		(368)
Present value of operating lease liabilities	$	2,721