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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | . Leases The Company leases office and laboratory space in addition to a manufacturing agreement which has been determined to contain an embedded lease. Operating lease commitments The Company leases office and laboratory space which include rent escalations and are subject to additional variable charges, including common area maintenance, property taxes and property insurance. Given the variable nature of such costs, they are recognized as expense as incurred. Additionally, some of the Company’s leases are subject to certain fixed fees which the Company has determined to be non-lease components. The Company has elected the practical expedient to account for lease and non-lease components as a single-lease component and has included fixed payments related to non-lease components in calculating the operating lease liability. In 2024, the Company extended the terms of its lab and office operating leases and leased additional lab space resulting in an increase in the right-of-use asset and lease liability of $4,242. Finance lease commitments - Embedded leases As described further in Note 7, in August 2023, the Company entered into new work orders under the WuXi Agreement for WuXi to serve as one of the Company’s cell processing manufacturing partners for the global clinical development of rese-cel. WuXi converted the Company’s non-dedicated suite to a Dedicated Suite for GMP manufacturing for the Company’s rese-cel and MuSK-CAART programs, for an initial term of 18 months. The terms of the August 2023 work orders included both fixed costs and contingent variable costs. The lease commenced October 1, 2023. In 2024, the Company remeasured the lease due to resolution of the contingency related to variable costs and an amendment to the 2023 work order to extend the term of the agreement for an additional 18 months through August 2026 resulting in an increase in the right-of-use asset and lease liability of $10,963. The Company may terminate the Dedicated Suite lease for convenience with six months’ prior written notice and up to a $1,080 termination fee if both the rese-cel and MuSK-CAART work orders are terminated. As described further in Note 7, in December 2024, the Company entered into the Lonza Agreement with Lonza to serve as one of our manufacturing partners. Under the initial work order, Lonza will perform cell therapy manufacturing activities for our CAR-T cell therapy product rese-cel for a term of 12 months and total cost of approximately $16,000 with the ability to extend the manufacturing period subject to the terms of the Lonza Agreement. The Lonza Agreement is currently being evaluated for lease accounting under ASC 842. No right-of-use asset or liability was recognized as of December 31, 2024, as lease commencement begins in fiscal year 2025. Summary of lease costs recognized under ASC 842 The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating and finance leases for the years ended December 31, 2024 and 2023.
|  | For the year ended December 31, |
|  | 2024 |  |  | 2023 |
Finance leases |  |  |  |  |  |
Interest expense |  | $ | 748 |  |  | $ | — |
Amortization expense |  |  | 3,102 |  |  |  | — |
Total fixed finance lease cost |  | $ | 3,850 |  |  | $ | — |
Variable lease cost |  |  | 930 |  |  |  | — |
Total finance lease cost |  | $ | 4,780 |  |  | $ | — |
Operating leases |  |  |  |  |  |
Fixed lease cost |  | $ | 3,247 |  |  | $ | 2,477 |
Total fixed operating lease cost |  | $ | 3,247 |  |  | $ | 2,477 |
Variable lease cost |  |  | 296 |  |  |  | 65 |
Short-term lease cost |  |  | 750 |  |  |  | 717 |
Total operating lease cost |  | $ | 4,293 |  |  | $ | 3,259 |
Cash paid in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows used for operating leases |  | $ | 3,291 |  |  | $ | 2,456 |
Operating cash flows used for finance leases |  |  | 748 |  |  |  | — |
Financing cash flows for finance leases |  |  | 897 |  |  |  | — |
Other information |  |  |  |  |  |
Weighted average remaining lease term - finance leases (in years) |  |  | 1.7 |  |  |  | — |
Weighted average discount rate - finance leases |  |  | 11.5 | % |  |  | — |
Weighted average remaining lease term - operating leases (in years) |  |  | 1.7 |  |  |  | 1.5 |
Weighted average discount rate - operating leases |  |  | 11.0 | % |  |  | 9.5 | %
For finance leases embedded in CDMO arrangements, interest expense is recognized using the effective interest method, applying the Company's incremental borrowing rate as required by ASC 842, and amortization expense is recognized on a straight-line basis over the shorter of the life of the asset or the term of the lease. Future lease payments under the non-cancelable operating and finance leases as of December 31, 2024 are as follows:
|  | Finance Leases |  |  | Operating Leases |
2025 |  | $ | 6,328 |  |  | $ | 4,227 |
2026 |  |  | 3,792 |  |  |  | 2,769 |
Total undiscounted lease payments |  |  | 10,120 |  |  |  | 6,996 |
Less imputed interest |  |  | (890 | ) |  |  | (626 | )
Total lease liability |  | $ | 9,230 |  |  | $ | 6,370 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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