Leases

12 Months Ended

Dec. 31, 2024

7. Leases

In December 2020, the Company entered into a lease agreement for laboratory and office space located at 480 Arsenal Way, Watertown, Massachusetts (the “Arsenal Way Lease”). The lease commenced in April 2021, with a term of seven years and an option to extend the term for an additional five years at then-market rental rates. The Company delivered a letter of credit of $0.3 million to the landlord, which was subsequently reduced to $0.2 million in August 2024 in accordance with the lease, which is included in restricted cash in the accompanying consolidated balance sheets. Under the terms of the lease, the base rent is $1.0 million, subject to a 3% annual rent increase, plus an allocation of operating expenses and taxes.

In August 2023, the Company entered into an operating lease agreement, denominated in Swedish Krona, for office and laboratory space located in Lund, Sweden. The term of the lease commenced in December 2023. The lease has an initial term of three years and will automatically renew for an additional term of three years unless the Company provides written notice of termination nine months prior to the termination date.

In July 2024, the Company entered into an operating lease agreement, denominated in Swedish Krona, for additional office and laboratory space adjacent to its existing leased space located in Lund, Sweden. The term of the lease commenced in September 2024. The lease has an initial term of three years and will automatically renew for an additional term of three years unless the Company provides written notice of termination nine months prior to the termination date.

The following table summarizes the presentation of the Company’s operating leases on its consolidated balance sheets as of December 31, 2024 and 2023 (in thousands):


Leases	Balance sheet classification	December 31, 2024		December 31, 2023
Assets:
Operating lease assets	Operating lease right-of-use assets	$	3,554	$	4,429
Total lease assets		$	3,554	$	4,429
Liabilities:
Current:
Operating lease liabilities	Operating lease liability, current	$	1,057	$	877
Noncurrent:
Operating lease liabilities	Operating lease liability, long-term		2,588		3,767
Total lease liabilities		$	3,645	$	4,644

The components of lease cost under ASC 842 included within research and development expenses and general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss for the years ended December 31, 2024 and 2023 were as follows (in thousands):


	For the Year Ended December 31,
Lease cost	2024		2023
Operating lease cost	$	1,276	$	1,140
Variable lease cost		645		492
Sublease income		—		(134	)
Total lease cost	$	1,921	$	1,498

As of December 31, 2024 and 2023, the weighted-average remaining lease term for operating leases was 3.2 years and 4.2 years, respectively, and the weighted-average discount rate was 8.26% and 8.30%, respectively. Cash paid for amounts included in the measurement of lease liabilities was $1.4 million and $1.1 million for the years ended December 31, 2024 and 2023, respectively.

Future minimum annual lease commitments under the Company’s non-cancelable operating leases as of December 31, 2024 were as follows (in thousands):


Year ended December 31,	Amount
2025	$	1,227
2026		1,311
2027		1,208
2028		404
2029		—
Total lease payments		4,150
Less: interest		(505	)
Present value of operating lease liabilities	$	3,645