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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has operating leases for its laboratory and office space in Philadelphia, Pennsylvania. The Company’s operating leases have term end dates ranging from 2025 to 2029. The Company also has obligations under an arrangement for the use of certain laboratory equipment that are classified as finance leases that commenced in 2022 and have end dates ranging from 2025 to 2026. The Company’s operating and finance lease ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. The Company is responsible for payment of certain real estate taxes, insurance and other expenses on certain of its leases. These amounts are generally considered to be variable and are not included in the measurement of the ROU assets and lease liability. The Company accounts for non-lease components, such as maintenance, separately from lease components. The Company carries laboratory equipment from failed sale-leasebacks, as assets held for sale on the accompanying unaudited interim consolidated balance sheets. The ongoing lease payments are recorded as reductions to the finance liability and interest expense. As of March 31, 2025, the Company had a $1.7 million financing liability recorded in other current liabilities and other long-term liabilities on the unaudited interim consolidated balance sheets. The elements of the lease costs were as follows (in thousands):
| Three Months Ended March 31,
| 2025 |  | 2024
Operating lease cost | $ | 929 |  |  | $ | 1,469 |
Finance lease cost: |  |  |
Amortization of lease assets | 263 |  |  | 1,298 |
Interest on lease liabilities | 19 |  |  | 236 |
Total finance lease cost | 282 |  |  | 1,534 |
Variable lease cost | 115 |  |  | 472 |
Total lease cost | $ | 1,326 |  |  | $ | 3,475 |
Lease term and discount rate information related to leases was as follows:
| March 31,
| 2025 |  | 2024
Weighted-average remaining lease term (in years) |  |  |
Operating leases | 2.4 |  | 2.3
Finance leases | 0.6 |  | 1.5
Weighted-average discount rate |  |  |
Operating leases | 9.8 | % |  | 9.3 | %
Finance leases | 9.0 | % |  | 9.0 | %
Supplemental cash flow information was as follows (in thousands):
| Three Months Ended March 31,
| 2025 |  | 2024
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash used in operating leases | $ | 707 |  |  | $ | 1,463 |
Operating cash used in finance leases | $ | 19 |  |  | $ | 236 |
Financing cash used in finance leases | $ | 304 |  |  | $ | 1,319 |
Future maturities of lease liabilities were as follows as of March 31, 2025 (in thousands):
| Operating Leases |  | Finance Leases
Fiscal year ending: |  |  |
2025 (remaining nine months) | $ | 1,042 |  |  | $ | 639 |
2026 | 226 |  |  | 20 |
2027 | 233 |  |  | — |
2028 | 240 |  |  | — |
2029 | 184 |  |  | — |
Thereafter | — |  |  | — |
Total future minimum payments | 1,925 |  |  | 659 |
Less imputed interest | (240) |  |  | (19) |
Present value of lease liabilities | $ | 1,685 |  |  | $ | 640 |
Licensing and Sponsored Research Agreements Under a license agreement with The Trustees of the University of Pennsylvania (Penn), entered into in November 2017, the Company is required to make annual payments of $25,000. Penn is eligible to receive up to $10.9 million per product in development upon the achievement of certain clinical, regulatory and commercial milestone events. There are additional milestone payments required to be paid of up to $30.0 million per product in commercial milestones and up to an additional $1.7 million in development and regulatory milestone payments for the first CAR-M product directed to mesothelin. Additionally, the Company is obligated to pay Penn single-digit royalties based on its net sales. Contingencies Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. As of March 31, 2025, the Company was in negotiations with a vendor to determine the total costs owed for research and development services provided. While the negotiations are ongoing, the Company believes a liability is probable. The Company has estimated the amount to be owed to be $1.5 million, of which $1.0 million and $0.5 million are included within accounts payable and accrued expenses, respectively, on the accompanying consolidated balance sheets. The final amount owed may differ from the estimate as negotiations progress. The Company will continue to evaluate the matter and will adjust the liability as necessary based on any new information or agreements reached with the vendor.

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