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Commitments and Contingencies
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

10. Commitments and Contingencies

 

Leases

The Company leases two facilities at 880 Winter Street and 830 Winter Street in Waltham, Massachusetts. Each lease has specified terms and includes renewal options. Given uncertainty as to the Company's intentions with respect to these leases, the renewal options were not deemed reasonably certain.

On November 8, 2023, the Company entered into a lease amendment extending the expiration date of the 830 Winter Street Lease from September 30, 2024 to October 31, 2029 and provides for one option to renew the 830 Winter Street Lease for a five-year period commencing on November 1, 2029, resulting in an increase in the lease liability of $6.2 million.

 

Summary of lease cost

The following table summarizes the presentation in the Company's consolidated balance sheets of its operating leases (in thousands):

 

 

 

As of December 31,

 

 

 

2023

 

 

2022

 

Assets:

 

 

 

 

 

 

Operating lease assets

 

$

63,492

 

 

$

59,102

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

 

3,246

 

 

 

3,681

 

Operating lease liabilities, net of current portion

 

 

59,140

 

 

 

53,013

 

Total operating lease liabilities

 

$

62,386

 

 

$

56,694

 

 

The following table summarizes the effect of lease costs in the Company's consolidated statement of operations (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2023

 

 

2022

 

Operating lease costs

 

$

10,626

 

 

$

3,264

 

Short-term lease costs

 

 

44

 

 

 

332

 

Variable lease costs

 

 

5,120

 

 

 

1,551

 

Total lease costs

 

$

15,790

 

 

$

5,147

 

 

During the years ended December 31, 2023 and 2022, the Company made cash payments for operating leases of $9.4 million and $2.0 million, respectively.

As of December 31, 2023, future payments of operating lease liabilities are as follows (in thousands):

 

 

 

As of December 31, 2023

 

2024

 

$

9,507

 

2025

 

 

10,463

 

2026

 

 

10,944

 

2027

 

 

11,255

 

2028 and thereafter

 

 

53,734

 

Total future payments of operating lease liabilities

 

 

95,903

 

Less: imputed interest

 

 

(33,517

)

Present value of operating lease liabilities

 

$

62,386

 

 

As of December 31, 2023, the weighted average remaining lease term was 8.6 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 10.3%. As of December 31, 2022, the weighted average remaining lease term was 9.7 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 9.8%.

Brigham and Women’s License Agreement

The Company obtained the worldwide exclusive license to its foundational technology from The Brigham and Women’s Hospital, Inc. (or BWH). The license, as amended, grants worldwide exclusive use to the patent underlying the TargetScan technology in exchange for fees including development milestones and various royalties on product sales should they occur in the future.

Royalty Agreement

In June 2018, the Company amended and restated an existing royalty agreement with one of its founders. Under the amended and restated royalty agreement, the Company agreed to pay the founder an aggregate royalty of 1% of net sales of any product sold by the Company or by any of its direct or indirect licensees for use in the treatment of any disease or disorder covered by a pending patent application or issued patent held or controlled by the Company as of the last date that the founder was providing services to the Company as a director or consultant under a written agreement in perpetuity. Royalties are payable with respect to each applicable product for a defined period of time set forth in the royalty agreement. The founder assigned his rights and obligations under the royalty agreement to one of his affiliated entities in January 2021.