Leases

6 Months Ended

Sep. 30, 2024

The Company has entered into operating leases for its corporate offices, lab facilities, and storage spaces, with remaining contractual periods ranging from 1.3 years to 6.8 years. For the Company’s facility in Sunnyvale, California (the “Sunnyvale facility”), there is an option to extend the lease for a period of seven years. The Company is not reasonably certain that it will exercise this option and therefore it is not included in its right-of-use (“ROU”) assets and lease liabilities as of September 30, 2024. The Company did not have any finance leases for the periods presented.

On September 16, 2024, the Company entered into an agreement with a third party to sublease 17,312 square feet of the Sunnyvale facility. The total rental commitment over the four-year term of the sublease is $3.2 million. The Company’s sublease agreement: (i) includes renewal and termination options; (ii) provides for customary escalations of lease payments in the normal course of business; (iii) grants the subtenant free rent for specific months during term; (iv) requires variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments; and (v) grants the subtenant title of furniture if it extends the lease. The sublease is classified as operating leases whereby sublease income is recognized on a straight-line basis over the sublease term that expires in 2028. Sublease income was $30 thousand for the three and six months ended September 30, 2024. There was no sublease income recognized during the three and six months ended September 30, 2023.

For the three months ended September 30, 2024 and 2023, the Company recorded operating lease costs of $3.3 million and $3.4 million, respectively, and variable operating lease costs of $1.4 million and $1.2 million, respectively. For the six months ended September 30, 2024 and 2023, the Company recorded operating lease costs of $6.7 million and $6.8 million, respectively, and variable operating lease costs of $2.9 million and $2.5 million, respectively.

As of September 30, 2024, the future minimum lease payments included in the measurement of the Company’s operating lease liabilities were as follows:


	September 30, 2024
	(in thousands)
Fiscal years ending March 31,
Remainder of 2025 (Remaining six months)	$	6,527
2026	15,946
2027	15,472
2028	11,666
2029	12,016
Thereafter	29,414
Total future operating lease payments	91,041
Less: imputed interest	(19,353)
Total operating lease liabilities	$	71,688