In September 2021, the Company entered into a lease for laboratory and office space in Watertown, Massachusetts with an initial term of ten years from the term commencement date of December 2022, and a five-year renewal option. The lease commenced for accounting purposes in January 2023 when the leased space was made available for the Company’s use. As of the lease commencement date, the Company has determined that it is not reasonably certain to exercise the option to extend the lease and has not included the extension period in the lease term. The monthly lease payment is approximately $0.2 million with annual escalation of approximately 3%. The lease includes a $3.7 million construction allowance. At the lease commencement date, the Company recorded an initial lease liability of $14.3 million and a right-of-use asset of $17.3 million.

Operating lease expense was $0.6 million and $0.6 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Variable lease expense was $0.2 million and $0.3 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Variable lease expense generally includes common area maintenance, utilities, and property taxes.

At March 31, 2025, the weighted-average remaining lease terms related to the operating lease is 7.7 years.

The weighted-average discount rates used for the Watertown lease at the time that the lease was evaluated was 7.57%.

Future minimum lease payments due under the Company’s operating lease liabilities as of March 31, 2025 are as follows:


	Operating Leases
2025	$	1,476
2026		2,027
2027		2,088
2028 and thereafter		11,269
Total lease payments		16,860
Less: imputed interest		(4,167	)
Total future minimum lease payments	$	12,693