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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Leases Redwood City The Company has a lease for facilities in Redwood City, California (“Redwood City Premises”), which expires December 31, 2031, with an option to extend for a period of eight years. The lease includes an additional tenant improvement allowance of up to $2.0 million to be used at the Company’s discretion. Any amounts drawn would be amortized over the remaining lease term at 9% per annum, not subject to annual base rent increases. Under this lease, the Company provided the landlord of the Redwood City Premises with a letter of credit in the amount of $2.0 million, which is classified as restricted cash under long-term assets on the Company’s condensed consolidated balance sheets. As of September 30, 2025, the Company had a total future rent obligation of $42.5 million related to this lease. North Carolina On January 8, 2021, the Company entered into an operating lease agreement for a building in North Carolina (“NC Premises”). The lease commenced in April 2021, when the Company obtained control of the NC Premises, and the lease term expires in October 2037 with two options to extend the lease term for a period of five years each. On October 26, 2021, the Company entered into a sublease agreement with Jaguar Gene Therapy, LLC (“Jaguar”) for the NC Premises through October 2037, the remainder of the lease term, and concurrently changed the terms of the head lease. In addition, the remainder of the tenant improvement allowance under the original lease of approximately $22.7 million was transferred to Jaguar. On April 3, 2023, the Company entered into an amendment of the lease of its NC Premises with the landlord and subtenant. Under this amendment, the parties agreed to substantially reduce the total tenant improvement allowance in exchange for lower monthly rent. The Company accounted for this amendment as a lease modification under ASC 842. The Company remeasured the lease liability, resulting in an increase in the lease liability with a corresponding increase of the right-of-use asset of $0.3 million in the quarter ended June 30, 2023. There was no charge recognized in the consolidated statement of operations. In April 2023, Jaguar assigned the sublease to Advanced Medicine Partners, LLC (at that time, a wholly-owned subsidiary of Jaguar, “AMP” or the “subtenant”) as the subtenant for the NC Premises for the remainder of the lease term. Pursuant to the sublease and the notice and waiver of assignment (the “assignment agreement”), Jaguar remained obligated for AMP’s proper performance under the sublease. In the first quarter of 2025, the subtenant made payments totaling $1.4 million for January and February 2025 rent and drew $2.4 million from the available tenant improvement allowance, after which the subtenant failed to remit the March 2025 and subsequent rent payments. As a result, the subtenant and Jaguar defaulted, and failed to cure such defaults under the sublease and the assignment agreement for the NC Premises. The Company assumed responsibility for rent payments beginning in March 2025. In February 2025, a lien totaling $4.8 million was filed by a third-party contractor against the subtenant’s interest in the NC Premises. The Company discharged the lien in March 2025 by depositing cash in the full amount with the applicable court in order to avoid a default under the head lease. On July 23, 2025, the Company and the third-party contractor resolved the third-party contractor’s and subcontractors’ lien claims against the NC Premises and the $4.8 million deposited by the Company with the court. The Company remains obligated under the head lease and as of September 30, 2025, had a total future rent obligation of $112.6 million. As a result of the uncured defaults, the Company terminated the sublease and on April 10, 2025 initiated a lawsuit against the subtenant and Jaguar in the Superior Court of Wake County, North Carolina to enforce its rights under the sublease and to seek recovery of losses and damages incurred due to the defaults by the subtenant and Jaguar. In September 2025, the Company executed a Fourth Amendment to its lease agreement for its NC Premises with ARE-NC-Region No. 21 LLC (the “Landlord”). Under the terms of the amendment, the Company’s rent and related operating expense obligations are contractually abated through February 28, 2026. The amendment also provides for contingent early termination of the lease on or about the earlier to occur of (i) the execution of the Landlord of a replacement lease with a third-party tenant or (ii) the closing of a sale of the NC Premises (either event, an “Early Termination Date”). In connection with this arrangement, the Company agreed to an early termination fee, consisting of (i) a $7.4 million promissory note, delivered in escrow, payable on the maturity date, which is the earlier of January 31, 2031 or an achievement by the Company of at least $150 million in annual net revenues or annual royalties from the Company’s lead candidate, Ixo-vec (the “Maturity Date”) and (ii) $0.1 million in cash payable within 30 days after the Early Termination Date. The lease promissory note will be held in escrow and will not be released to the Landlord unless and until the Early Termination Date occurs. The Maturity Date of the lease promissory note will accelerate upon a change of control of the Company (including a change of control of the Company occurring prior to the Early Termination Date, in which case the Maturity Date will be accelerated upon release of the promissory note from escrow on the Early Termination Date). If early termination does not occur prior to March 1, 2026, the Company’s rent obligations under the lease will resume on March 1, 2026. The Company accounted for this amendment as a lease modification under ASC 842. As a result of the modification, the Company remeasured the lease liability and right-of-use assets, resulting in decrease of the lease liability, current portion of $3.8 million, a decrease in lease liability, net of current portion of $0.6 million, and a decrease in operating lease right-of-use assets of $4.4 million. There was no charge recognized in the consolidated statement of operations. The following table summarizes the undiscounted future non-cancellable lease payments under the lease agreements as of September 30, 2025 (in thousands):
December 31, |  | Operating Leases |  |
2025 (remaining three months) |  | $ | 1,511 |  |  |
2026 |  | 13,471 |  |  |
2027 |  | 15,278 |  |  |
2028 |  | 15,677 |  |  |
2029 |  | 16,089 |  |  |
Thereafter |  | 93,087 |  |  |
Total undiscounted lease payments |  | $ | 155,113 |  |  |
Less: Imputed interest |  | (66,173) |  |  |
Total |  | $ | 88,940 |  |  |
The Company recorded sublease loss of zero and $1.0 million in the three and nine months ended September 30, 2025, respectively. The Company recorded a sublease loss of $3.7 million and $8.5 million in the three and nine months ended September 30, 2024, respectively. Sublease income or loss was recognized in general and administrative expense.

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