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v3.26.1

Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases The C ompany has entered into non-cancellable operating leases with remaining lease terms expiring between 2026 and 2034. Of the four operating leases that have commenced as of June 30, 2026, three are leases in which the Company is the lessee for office space. The remaining operating lease was acquired in connection with the Conversion Event and includes office, manufacturing, and warehouse space. In the fourth quarter of 2025, the Company entered into an additional non-cancelable operating lease for office space with a term of approximately eight years, which, along with rent payments, is expected to commence in the third quarter of 2026. The Company had no finance leases as of June 30, 2026 and December 31, 2025. The components of lease expense for the periods ended June 30, 2026 and 2025 were as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Lease cost |  |  |  |  |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 410 |  |  | $ | 86 |  |  | $ | 747 |  |  | $ | 152 |
Total lease cost |  | $ | 410 |  |  | $ | 86 |  |  | $ | 747 |  |  | $ | 152 |
Other information |  |  |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use asset obtained in exchange for new operating lease liabilities |  | $ | 1,504 |  |  | $ | — |  |  | $ | 2,295 |  |  | $ | 859 |
Cash paid for amounts included in the measurement of lease liabilities, included in operating cash flows |  | $ | 345 |  |  | $ | 86 |  |  | $ | 654 |  |  | $ | 161 |
Weighted-average remaining lease term (years) |  |  | 4.69 |  |  |  | 3.71 |  |  |  | 4.69 |  |  |  | 3.71 |
Weighted-average discount rate |  |  | 6.90 | % |  |  | 6.85 | % |  |  | 6.90 | % |  |  | 6.85 | %
Maturities of lease liabilities as of June 30, 2026 were as follows (in thousands):
2026 |  |  | 664 |
2027 |  |  | 1,434 |
2028 |  |  | 1,470 |
2029 |  |  | 1,403 |
2030 |  |  | 1,329 |
Thereafter |  |  | 562 |
Total lease payment |  |  | 6,862 |
Less: amount representing imputed interest |  |  | (1,043 | )
Total future minimum lease obligations |  | $ | 5,819 |
Legal Proceedings A liability for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources is recorded in the unaudited condensed consolidated 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 a provision in an assignment and technology transfer agreement between the Company and ANI, dated November 15, 2010 (the ANI Agreement), obligates the Company to pay ANI a royalty on certain “net sales” of cretostimogene, and (ii) compensatory damages alleging the Company was unjustly enriched by obtaining the benefit of certain non-patent assets under the ANI Agreement without paying adequate consideration to ANI. On July 16, 2025, the Superior Court granted the Company’s motion for summary judgment with respect to ANI’s request for a declaratory judgment to receive royalty payments from the potential sale of cretostimogene but denied the Company’s motion for summary judgment with respect to ANI’s unjust enrichment claim. On July 29, 2025, a jury entered a verdict in favor of the Company, unanimously rejecting all of ANI's claims for unjust enrichment damages. As a result, the Company will not owe ANI a future royalty of 5% on commercial sales of cretostimogene, no damages have been awarded to ANI, and there are no further payments due to ANI under the ANI Agreement. On April 10, 2026, the Superior Court heard oral arguments from ANI and the Company on pending post-trial motions submitted by the Company and ANI, which included (i) ANI’s Motion for Judgment as a Matter of Law; (ii) ANI’s Motion to Unseal Trial Exhibits; and (iii) the Company’s Motion for Costs. On July 16, 2026, the Superior Court issued an order denying ANI's motions for a new trial and judgment as a matter of law. The Company will continue to vigorously defend any appeals brought by ANI. 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 June 30, 2026, the Company had not experienced any losses related to these indemnification obligations, and no claims with respect thereto were outstanding.

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