Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

5. Commitments and Contingencies

Operating Leases

As of September 30, 2024 and December 31, 2023, the Company had two operating leases, in which the Company was the lessee for office space. As of September 30, 2024 and December 31, 2023, the lease terms were through 2025 and 2026. The Company had no finance leases as of September 30, 2024 and December 31, 2023.

The components of lease expense as of September 30, 2024 and 2023 were as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Lease cost
Operating lease cost	$	77		$	57		$	173		$	179
Total lease cost	$	77		$	57		$	173		$	179
Other information
Cash paid for amounts included in the measurement of lease liabilities, included in operating cash flows	$	60		$	59		$	163		$	161
Weighted-average remaining lease term		1.41			2.35			1.41			2.35
Weighted-average discount rate		1.63	%		1.63	%		1.63	%		1.63	%

Maturities of lease liabilities as of September 30, 2024 were as follows (in thousands):


2024	$	60
2025		187
2026		52
Total lease payment		299
Less: amount representing imputed interest		(3	)
Total future minimum lease obligations	$	296

Legal Proceedings

A liability for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources is recorded in the condensed financial statements if it is determined that it is probable that a loss has been incurred, and that the amount (or range) of the loss can be reasonably estimated.

On March 4, 2024, a complaint was filed against the Company in the Superior Court of the State of Delaware by ANI Pharmaceuticals, Inc. seeking a declaratory judgment that an assignment and technology transfer agreement between the Company and ANI, dated November 15, 2010, obligates the Company to pay ANI a royalty on certain "net sales" of cretostimogene. The Company disputes the allegations raised in the case and is vigorously defending the matter.

Indemnification

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with officers and members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. As of September 30, 2024, the Company had not experienced any losses related to these indemnification obligations, and no claims with respect thereto were outstanding.