In December 2021, the Company entered into a non-cancelable facility lease for approximately 80,168 square feet of lab and office space in San Diego, California (the 2024 Lease). The 2024 Lease commenced in November 2024 and has a 120-month term from the lease commencement date, with base rent payments under the lease commencing in July 2025, after an abatement period of 270 consecutive calendar days, and continuing through the conclusion of the term. The 2024 Lease includes base rent payments totaling $72.5 million, as well as additional payment obligations for common area maintenance and property taxes. The Company has the right to extend the term of the 2024 Lease for an additional 60 months; however, this option has not been included in the lease term as it is not reasonably assured of exercise. Additionally, as a security deposit under the 2024 Lease, the Company is required to maintain a standby letter-of-credit in the amount of $560,000, which must remain in place until November 2034 and is classified as restricted cash on the balance sheet. The Company has recorded an operating lease liability based on the present value of the lease payments using an estimated incremental borrowing rate of approximately 8.3% as the 2024 Lease does not have a stated rate and the implicit rate was not readily determinable, and a right-of-use (ROU) asset based on the corresponding operating lease liability. The net ROU asset and associated lease liability are reflected in the Company’s balance sheet as of March 31, 2025.

Lease expense under the 2024 Lease and a leasing arrangement for the Company’s prior corporate headquarters (lab and office space) that ended in November 2024 were approximately $2.3 million and $0.7 million, which includes operating lease costs of $1.9 million and $0.7 million, and variable lease costs of $0.4 million and $0 for the three months ended March 31, 2025 and 2024, respectively.

The Company paid $0.1 million and $0.7 million for operating leases that were included in the operating activities section of the condensed statements of cash flows for the three months ended March 31, 2025 and 2024, respectively. The remaining lease term and the discount rate of the Company’s operating lease was 9.6 years and 8.3% at March 31, 2025. The remaining lease term and the discount rate of the Company’s operating lease was 9.8 years and 8.3% at December 31, 2024. The remaining lease term does not include the renewal option. The 2024 Lease does not contain any material residual value guarantees or material restrictive covenants.

Future minimum lease payments under the 2024 Lease as of March 31, 2025, exclusive of future variable lease payments, are as follows (in thousands):


Year ending December 31,
2025 (remaining nine months)	$	2,556
2026		7,056
2027		7,259
2028		7,469
2029		7,684
Thereafter		40,387
Total minimum lease payments	$	72,411
Less: Amount representing interest		(23,837	)
Operating lease liabilities	$	48,574