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Leases and Commitments
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases and Commitments Leases and Commitments
(a)Operating Leases
The Company has a single lease for real estate, including laboratory and office space, and certain equipment, located at 128 Spring Street in Lexington, Massachusetts which commenced on May 1, 2020.
A portion of the Company’s leased space is subject to an early termination option that becomes effective on the lease commencement date of a new lease for larger premises within the landlord’s commercial real estate portfolio. The landlord had the option to early terminate the lease agreement by providing written notice to the Company eighteen months prior to December 31, 2025, or by June 30, 2024. The Company previously expected the lease to end as of December 31, 2025, and the Company no longer expects the lease to end early, which was accounted for as a lease modification. The lease will expire on April 30, 2027. During the year ended December 31, 2024, the Company recognized an increase of $1.4 million to the lease liability and right-of-use asset as a result of the lease modification.
The discount rate associated with the Company’s right-of-use asset is 10%. The total cash obligation for the base rent over the seven-year term of this lease is approximately $10.5 million, of which $1.5 million was paid during the year ended December 31, 2024.
The Company's lease is an operating lease. The following table summarizes the presentation in the Company's Consolidated Balance Sheet for the operating lease:
December 31,
(in thousands)
20242023
Assets:
Operating lease right-of-use asset$3,163 $3,056 
Liabilities:
Operating lease liability - short-term$1,336 $1,305 
Operating lease liability - long-term1,618 1,489 
Total operating liability$2,954 $2,794 
The following table summarizes the effect of lease costs in our Consolidated Statements of Operations and Comprehensive Loss:
For the Year Ended December 31,
(in thousands)
20242023
Operating lease cost
Research and development$844 $483 
General and administrative722 1,182 
Total$1,566 $1,665 
The Company’s lease payments through the end of the expected lease term are expected to be as follows:
Year Ending December 31,(in thousands)
20251,558 
20261,287 
2027433 
Total lease payments$3,278 
Less: interest324 
Present value of operating lease liabilities$2,954 
(b)License and Funding Agreements
In exchange for the right to use licensed technology in its research and development efforts, the Company has entered into various license agreements and funding agreements. These license agreements generally stipulate that the Company is obligated to pay royalties on future revenues, if any, resulting from use of the underlying licensed technology. Such revenues may include up-front license fees, contingent payments upon collaborators’ achievement of development and regulatory objectives, and royalties. In addition, some of the agreements commit the Company to make contractually defined payments upon the attainment of scientific or clinical milestones. The Company expenses these payments as they are incurred and expenses royalty payments as related future product sales or as royalty revenues are recorded. The Company accrues expenses for scientific and
clinical objectives over the period that the work required to meet the respective objective is completed, provided that the Company believes that the achievement of such objective is probable.