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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Lease Agreements
The Company determines if an arrangement is a finance lease, operating lease or short-term lease at inception. During the periods presented, the Company was party to various non-cancellable office and laboratory space operating leases and short-term leases. Short-term leases are not subject to recognition of a right-of-use (ROU) asset or liability or straight-line lease expense requirements.
As of December 31, 2024, the Company’s ROU assets and liabilities related to the operating lease for the Company headquarters are as follows (in thousands):
ROU assets$5,619 
Lease liabilities, current portion$3,844 
Lease liabilities, net of current portion2,957 
Total lease liabilities$6,801 
As of December 31, 2024, maturities of the lease liabilities due under the operating lease are as follows (in thousands):
Year ending December 31,
2025$3,854 
20263,639 
Total lease payments7,493 
Less imputed interest(692)
Total operating lease liabilities6,801 
Less lease liabilities, current portion(3,844)
Lease liabilities, net of current portion$2,957 
Other information related to leases was as follows (in thousands):
Year Ended December 31,
202420232022
Cash paid included in operating cash flows$3,696$3,328$1,762
Weighted-average remaining lease term (in years)1.92.93.9
Weighted-average discount rate5.9 %5.9 %5.5 %
Lease cost was $3.3 million, $3.0 million and $2.7 million for the years ended December 31, 2024, 2023, and 2022, respectively. Short-term and variable lease costs were immaterial for all periods presented.
In April 2024, the Company entered into a sublease agreement with Turning Point Therapeutics, Inc. to rent 105,000 square feet for office and laboratory space for the Company’s future corporate headquarters. The term of the sublease is approximately 9 years, 9 months with payments expected to begin in August 2025. Pursuant to the terms of the sublease agreement, the sublandlord will provide the Company with a tenant improvement allowance of up to $33.6 million. An additional tenant improvement allowance of up to $5.0 million is also available to be repaid in equal installments through monthly rent payments, subject to 8% interest per annum and annual increases of 3% per annum. The Company also has an option and a right of first refusal for an additional 80,000 square feet in an adjacent available building, which has not been exercised. Total aggregate future lease commitments under the sublease agreement are approximately $72.6 million, excluding the option and refusal for the adjacent available building, and inclusive of a 3% annual rent increases and various agreed upon rent abatement amounts. The sublease will be measured and recognized upon commencement of the sublease. As of December 31, 2024, the sublease had not commenced because construction of improvements to bring the facility to its intended use was not substantially complete.
In connection with the sublease agreement, the Company is required to maintain a letter of credit for the benefit of the sublandlord in the amount of $2.5 million, which was delivered in April 2024 and is included in restricted cash in the Company’s consolidated balance sheets.
Litigation
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. There are no such matters currently outstanding for which any liabilities have been accrued.
Contractual Obligations
The Company enters into contracts in the normal course of business for contract research services, contract manufacturing services, professional services, and other services and products for operating purposes. These contracts may include certain provisions that could require payments for early termination. The amount of any such termination payments will vary depending on the timing of the termination and the specific terms of the contract. Further, the Company has entered into various contracts to acquire contractual rights to licensed technology, some of which may require the Company to make additional milestone payments upon initiation of a pivotal trial and U.S. Food and Drug Administration approval.