Leases

12 Months Ended

Dec. 31, 2024

. Leases

Operating Lease Obligations

Office facility

In January 2021, we entered into a lease agreement (the “Original Lease”) for our current corporate headquarters facility located in San Carlos, California (the “Headquarters Facility”). The lease term began on December 3, 2021, as amended on October 17, 2023, and was set to expire on December 31, 2025.

In September 2023, we entered into an assignment and assumption of lease agreement (the “Assignment Agreement”) for an expanded lease space in the same building as our Headquarters Facility (the “Assumed Lease Premises”). The assumed lease had an original contractual term of 10 years, set to expire on November 30, 2031. Pursuant to the Assignment Agreement, the base rent was abated for three full calendar months following the October 1, 2023 effective date of the Assignment Agreement. Thereafter, we were obligated to pay an aggregate of approximately $1.9 million in rent payments for the remaining nine months of the first year, with a 3% rent adjustment (not inclusive of rent abatement) every year thereafter.

In November 2024, we amended and restated the Original Lease (the “Amended and Restated Lease”) as a single, unified lease for our Headquarters Facility which includes the existing space under the Original Lease, Assumed Lease Premises (the “Existing Premises”) and expanded space covering additional floors (the “Additional Premises”), which resulted in a lease modification in accordance with ASC 842. The Amended and Restated Lease has an initial contractual term of 10 years, contains rent-free periods, scheduled rent increases, lease incentives and the option of two consecutive rights to extend the term for sixty months each. The effective date of the Amended and Restated Lease was November 15, 2024 which, for the purposes of lease accounting, is the commencement date of the lease of the Existing Premises. The commencement date of the Additional Premises will be when certain leasehold improvements and specifications are substantially complete, the first of which occurred on February 10, 2025, and the rest of which are estimated to occur between November 2025 and June 2026, for certain office and lab spaces on the additional floors. Our Amended and Restated Lease expires on February 28, 2035.

In November 2024, we entered into a sublease agreement, for which we are sublessor, for a portion of our Existing Premises. This sublease has a contractual term of two years, expiring on December 12, 2026, unless earlier terminated,

with two conditional options to extend the term of the sublease for a period of 12 months. The commencement date of this sublease was December 12, 2024.

In July 2024, we entered into a sublease agreement, for which we are subleasee for a new operating lease in the same campus as our corporate headquarters. This sublease has rent-free periods, scheduled rent increases, and a contractual term of two years, expiring on June 30, 2026, unless earlier terminated.

Manufacturing facility

In October 2023, we entered into the Commercial Manufacturing and Supply Agreement. We have concluded that this agreement contains an embedded lease and will be accounted for in accordance with ASC 842 upon the commencement date. As of December 31, 2024, the lease had not commenced and, as such, no lease liability or ROU asset was recorded on the consolidated balance sheets and no operating lease expense was recorded on the consolidated statements of operations. See Note 4, “Commercial Manufacturing and Supply Agreement,” for further details.

Information related to our ROU assets and related lease liabilities was as follows (dollar amounts in thousands):


	December 31,
	2024			2023
Cash paid for operating lease liabilities	$	11,511		$	7,390
Operating lease right-of-use assets	$	72,102		$	30,997

Operating lease liabilities - current	$	5,891		$	7,113
Operating lease liabilities - long-term	65,219			22,111
Total lease liabilities	$	71,110		$	29,224
Weighted-average remaining lease term (in years)	9.60			5.71
Weighted-average discount rate	7.2		%	8.4		%

Maturities of lease liabilities as of December 31, 2024 were as follows:


Years ending December 31,	(in thousands)
2025	$	10,859
2026	9,635
2027	8,610
2028	9,394
2029	9,676
Thereafter	51,970
Total future undiscounted lease payments	100,144
Less: Imputed interest	(29,034)
Present value of lease liabilities	$	71,110

Rent expense recognized under the leases was $11.5 million, $8.5 million and $7.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.