Lease obligation

12 Months Ended

Dec. 31, 2024

Lease obligation

Lease obligation

7. Lease obligation

Operating Leases

As of December 31, 2024, the Company has a lease for laboratory and office space at 75 Hayden Avenue in Lexington, Massachusetts through January 31, 2031, and a lease for additional office and laboratory space at 64 Sidney Street in Cambridge, Massachusetts (the “Cambridge Facility”) through November 30, 2026.

In August 2023, the Company entered into a first amendment (the “First Amendment”) to its existing lease for laboratory and office space at 75 Hayden Avenue in Lexington, Massachusetts, pursuant to which the Company agreed to lease approximately 61,307 square feet of additional office and laboratory space. The commencement date for the First Amendment occurred on February 1, 2024. The expected contractual obligation under the First Amendment to the Company’s existing lease is approximately $35.4 million, to be paid over the 7 year term of the lease.

The Company’s lease agreements require the Company to maintain a cash deposit or irrevocable letter of credit in the aggregate amount of $2.9 million payable to its landlords as security for the performance of its obligations under the leases. These amounts are recorded as restricted cash in the accompanying consolidated balance sheets.

In June 2024, the Company vacated its leased office and laboratory space in Cambridge, Massachusetts. The Company recorded an impairment charge of $2.8 million to operating expenses during the second quarter of 2024 as a result of the carrying value of the leased office and laboratory space asset group exceeding the undiscounted cash flows projected from a planned sublease of the facility. The impairment charge reduced the carrying value of the leased office and laboratory space asset group by $2.8 million. In August 2024, the Company executed the sublease of the Cambridge Facility (the “Sublease Agreement”). Payments received under the Sublease Agreement are included in other income in the condensed consolidated statements of operations and comprehensive (loss) income.

Total lease cost for operating leases of approximately $10.0 million, $3.6 million, and $4.6 million was incurred during the years ended December 31, 2024, 2023, and 2022, respectively. As of December 31, 2024, the weighted average remaining lease term was 4.7 years, and the weighted average incremental borrowing rate used to determine the operating lease liability was 6.8%. As of December 31, 2023, the weighted average remaining lease term was 5.0 years, and the weighted average incremental borrowing rate used to determine the operating lease liability was 7.4%.

The following table summarizes the operating sublease income generated under the Sublease Agreement and the BioNTech Sublease Agreement for the years ended December 31, 2024, 2023, and 2022:

	Years ended
	December 31,
	2024		2023		2022
	(in thousands)
Operating sublease income	$	601	$	—	$	1,380

Future minimum lease payments due under operating leases are as follows:

	Total Minimum
Year Ending December 31,	Lease Payments
	(in thousands)
2025	$	9,909
2026		9,983
2027		7,763
2028		7,996
2029		8,235
Thereafter		8,710
Total future minimum lease payments	$	52,595
Less: imputed interest		(8,869)
Total operating lease liabilities	$	43,726
Reported as:
Operating lease liabilities	$	7,227
Operating lease liabilities, net of current portion		36,499
Total operating lease liabilities	$	43,726