Leases

3 Months Ended

Mar. 31, 2025

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 60 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 sublessee 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 with Lonza. We have concluded that this agreement contains an embedded lease and will be accounted for in accordance with ASC 842 Leases upon the commencement date. As of March 31, 2025, the lease had not commenced and, as such, no lease liability or ROU asset was recorded on the condensed consolidated balance sheets and no operating lease expense was recorded on the condensed consolidated statements of operations. See Note 4, “Commercial Manufacturing and Supply Agreement,” for further details.

The following tables present additional information for our operating leases:


	March 31, 2025		December 31, 2024
Weighted-average remaining lease term (in years)	9.70		9.60
Weighted-average discount rate	7.2	%	7.2	%


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	17,575	$	—
Cash paid for operating lease liabilities	3,084		2,390

Maturities of lease liabilities as of March 31, 2025 were as follows:


Years ending December 31,	(in thousands)
Remainder of 2025	$	8,205
2026	11,761
2027	10,826
2028	11,824
2029	12,178
Thereafter	69,006
Total future undiscounted lease payments	123,800
Less: Imputed interest	(36,691)
Total lease liabilities	$	87,109

Rent expense recognized under the leases was $3.6 million and $2.7 million for the three months ended March 31, 2025 and 2024, respectively.