Leases

6 Months Ended

Jun. 30, 2026

Leases

Leases

9. Leases

2005 Market Street Lease Agreement

The Company was party to a lease agreement for office space, or the 2005 Market Street Lease Agreement, in Philadelphia, Pennsylvania. Under the 2005 Market Street Lease Agreement, the Company leased approximately 37,000 square feet. The 2005 Market Street Lease Agreement commenced in February 2021 and was expected to expire in December 2031 with an option to extend the term of the 2005 Market Street Lease Agreement by two additional terms of five years each. On May 22, 2026, the Company entered into the 2005 Market Street Lease Termination Agreement. Pursuant to the 2005 Market Street Lease Termination Agreement, the Company agreed to pay the landlord a termination fee of $2.3 million. As a result of the 2005 Market Street Lease Termination Agreement, the Company recognized a net gain of $1.9 million on the lease termination for the three months ended June 30, 2026. The net gain is comprised of a $2.7 million gain on the write-off of assets and liabilities for operating leases offset by a $0.8 million net loss on disposal of property and equipment. The assets disposed of as part of the termination primarily included leasehold improvements. As a result of the 2005 Market Street Termination Agreement, ROU assets decreased $0.7 million and lease liabilities for operating leases decreased $5.8 million during the three months ended June 30, 2026.

Sublease Agreement A

On August 7, 2023, the Company entered into a sublease agreement with a counterparty, or Sublessee A, to sublease approximately 8,000 square feet of the 2005 Market Street Lease Agreement, or Sublease Agreement A. This sublease term began on November 1, 2023, and was to continue through March 31, 2029. The base sublease rent was $0.1 million per year and increased by 2.75% annually through the expiration of the agreement. Additionally, Sublessee A was required to pay the portion of the common area maintenance expenses, operating expenses and use and occupancy taxes which the Company was required to pay under the 2005 Market Street Lease Agreement. In connection with the 2005 Market Street Lease Termination Agreement on May 22, 2026, the Sublease Agreement A was concurrently terminated.

Sublease Agreement B

On September 29, 2023, the Company entered into a sublease agreement with a counterparty, or Sublessee B, to sublease approximately 29,000 square feet of the 2005 Market Street Lease Agreement, or Sublease Agreement B. This sublease term began on March 1, 2024 and Sublessee B elected the option to extend the term of the sublease agreement through March 31, 2029. The base sublease rent was $0.9 million per year for the entire term of the sublease. Additionally, Sublessee B was required to pay applicable use and occupancy taxes but was not obligated to make payments for operating expenses and common area maintenance expenses which the Company was required to pay under the 2005 Market Street Lease Agreement. In connection with the 2005 Market Street Lease Termination Agreement on May 22, 2026, the Sublease Agreement B was concurrently terminated.

Laboratory Lease Agreement

The Company was also party to a lease agreement for laboratory space, or the Laboratory Lease Agreement, in Hopewell, New Jersey. The Laboratory Lease Agreement commenced in March 2021 and was expected to expire in March 2036 with an option to extend the term of the Laboratory Lease Agreement by up to two five-year terms. On March 4, 2026, the Company entered into the Hopewell Lease Termination Agreement with the Landlord. Pursuant to the Hopewell Lease Termination Agreement, the Company agreed to pay the Landlord a termination fee of $4.8 million as well as accrued rent through February 14, 2026. The Company has no further obligations under the Laboratory Lease Agreement subsequent to the effective date of the Hopewell Lease Termination Agreement. As of March 4, 2026, the Company recognized a net gain of $0.6 million on the lease termination comprised of a $3.8 million gain on the write-off of assets and liabilities for operating leases offset by a $3.2 million net loss on disposal of property and equipment, which was primarily leasehold improvements. As a result of the Hopewell Lease Termination Agreement, ROU assets decreased $9.4 million and lease liabilities for operating leases decreased $18.0 million during the six months ended June 30, 2026.

Hopewell Sublease Agreement

On September 4, 2024, the Company entered into a sublease agreement with a counterparty, or Sublessee C, to sublease approximately 3,200 square feet, or 5% of its approximately 62,000 square feet of leased laboratory space under the Laboratory Lease Agreement, or Hopewell Sublease Agreement. This sublease term began on September 11, 2024 and was scheduled to expire on December 31, 2029, with an option for Sublessee C to extend the term of the sublease through December 2032. The base sublease rent was $0.1 million per year and increased by 2.5% annually through the expiration of the Hopewell Sublease Agreement. Additionally, Sublessee C was required to pay the portion of the common area maintenance expenses, operating expenses, and use and occupancy taxes that the Company was required to pay under the Laboratory Lease Agreement. In connection with the Hopewell Lease Termination Agreement on March 4, 2026, the Hopewell Sublease Agreement was concurrently terminated. The Company has no ongoing sublease arrangements related to the Hopewell, New Jersey laboratory space.

As of June 30, 2026, the Company has been relieved of all its operating lease obligations.

The following table summarizes lease expense by lease type that was recognized during the three and six months ended June 30, 2026 and 2025:

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Operating lease expense	$	105	$	877	$	581	$	1,757
Variable lease expense		178		543		504		1,081
	$	283	$	1,420	$	1,085	$	2,838

The following table shows the weighted average discount rate and weighted average remaining lease term of the operating leases:

	Six Months Ended
	June 30, 2026		June 30, 2025
Weighted-average discount rate		0.0%		9.7%
Weighted-average remaining lease term (years)		0.0		9.8

The cash paid for amounts included in the measurement of the Company’s operating lease liabilities for the six months ended June 30, 2026 and 2025 were $0.8 million and $2.0 million, respectively, recorded in operating cash flows.

The following table summarizes sublease income that was recognized in other income (expense), net during the three and six months ended June 30, 2026 and 2025:

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Sublease rental income	$	225	$	363	$	580	$	730