XML 36 R19.htm IDEA: XBRL DOCUMENT v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
The Company previously leased certain office and laboratory space under a non-cancelable operating lease which expired in January 2025.
On July 9, 2024, the Company entered into a lease agreement for office space located at 3115 Merryfield Row, Suite 120, San Diego, CA 92121, consisting of approximately 18,421 square feet. The term of the lease is 63 months commencing on August 1, 2024. The base rent is $109,605 per month effective October 1, 2024, and it is subject to a 3% annual increase every October. The lease expires on October 31, 2029 with an option for a one-year extension and an option to terminate on December 1, 2027 with the payment of a termination fee equal to four months of the then-current base rent upon the termination date. As of December 31, 2024, the Company was not reasonably certain that it would exercise the extension options, and therefore did not include these options in the determination of the total operating lease term for accounting purposes.
Monthly rent expense is recognized on a straight-line basis over the term of the leases. The operating leases are included in the consolidated balance sheets at the present value of the lease payments at an incremental borrowing rate of 7% for each of the initial leased space and expansion space expiring in January 2025 and 12.4% for the office lease commenced on August 1, 2024 using the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment as the leases do not provide an implicit rate. As of December 31, 2024, the weighted average remaining lease term was 4.7 years, and weighted-average discount rate was 12.4%.
Lease costs were comprised of the following (in thousands):
Year Ended December 31,
202420232022
Operating lease cost$3,706 $3,114 $3,097 
Short-term lease cost48 52 45 
Total lease cost$3,754 $3,166 $3,142 
Cash paid for amounts included in the measurement of operating lease liabilities as of December 31, 2024 and 2023 was $3.8 million and $3.3 million, respectively.
Gross future minimum annual rental commitments as of December 31, 2024, were as follows (in thousands):
Undiscounted Rent
Payments
Year ending December 31,
2025$1,550 
20261,417 
20271,406 
20281,448 
20291,237 
Total undiscounted rent payments$7,058 
Present value discount(1,699)
Present value of lease payments$5,359 
Current portion of operating lease liabilities (included as a component of accrued expenses and other current liabilities)961 
Operating lease liabilities - long-term4,398 
Total operating lease liability$5,359