Lease obligation

3 Months Ended

Mar. 31, 2025

Lease obligation

Lease obligation

6. Lease obligation

Operating Leases

As of March 31, 2025, 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 through January 31, 2031. 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 remaining seven-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 condensed consolidated balance sheets.

In June 2024, the Company vacated the Cambridge Facility. 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. Subject to certain conditions set forth therein, the Sublease Agreement terminates simultaneously with the Company’s lease for the Cambridge Facility.

Total lease cost for operating leases of approximately $1.9 million and $1.7 million was incurred during the three months ended March 31, 2025 and 2024, respectively.

The following table summarizes the operating sublease income generated under the Sublease Agreement for the three months ended March 31, 2025 and 2024:

	Three Months Ended
	March 31,
	2025			2024
		(in thousands)
Operating sublease income	$	440	$	—

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

	Total Minimum
Year Ending December 31,	Lease Payments
	(in thousands)
2025	$	7,460
2026		9,983
2027		7,763
2028		7,996
2029		8,235
Thereafter		8,710
Total future minimum lease payments	$	50,147
Less: imputed interest		(8,151)
Total operating lease liabilities	$	41,996
Reported as:
Operating lease liabilities	$	7,430
Operating lease liabilities, net of current portion		34,566
Total operating lease liabilities	$	41,996