XML 23 R12.htm IDEA: XBRL DOCUMENT v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 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 into 2026. During the three and six months ended June 30, 2025, the Company abandoned one of its laboratory space operating lease right-of-use assets, resulting in a loss on abandonment of $0.9 million. In addition, during the three and six months ended June 30, 2025, the Company returned each of its finance lease right-of-use assets to its lessor, resulting in a loss of $1.0 million.
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 June 30, 2025, the Company had a $0.8 million financing liability recorded in other current liabilities and other long-term liabilities on the unaudited interim consolidated balance sheets. During the three and six months ended June 30, 2025, the Company returned each of its failed sale-leaseback laboratory equipment, resulting in a loss of $1.6 million.
The elements of the Company's lease costs were as follows (in thousands):
Six Months Ended June 30,
20252024
Operating lease cost$1,512 $3,154 
Finance lease cost:
Amortization of lease assets439 1,008 
Interest on lease liabilities31 159 
Total finance lease cost470 1,167 
Variable lease cost209 672 
Total lease cost$2,191 $4,993 
Lease term and discount rate information related to leases was as follows:
June 30,
20252024
Weighted-average remaining lease term (in years)
Operating leases2.52.5
Finance leases0.31.4
Weighted-average discount rate
Operating leases10.0%9.8%
Finance leases9.0%9.0%
Supplemental cash flow information was as follows (in thousands):
Six Months Ended
June 30,
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases$927 $3,203 
Operating cash used in finance leases$31 $159 
Financing cash used in finance leases$576 $906 
Future maturities of lease liabilities were as follows as of June 30, 2025 (in thousands):
Operating
Leases		Finance
Leases
Fiscal year ending: 
2025 (remaining six months)$671 $336 
2026226 20 
2027233 — 
2028240 — 
2029184 — 
Total future minimum payments1,554 356 
Less imputed interest(203)(7)
Present value of lease liabilities$1,351 $349 
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 June 30, 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 $1.9 million, of which $1.4 million and $0.5 million is 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.