v3.25.1
Leased Properties
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leased Properties LEASED PROPERTIES
Finance Lease - Clean Room Space
On July 24, 2024, the Company entered into a scope of work (the "SOW") with an unrelated third party for a controlled clean room space in Burlington, Massachusetts. The SOW became effective upon the execution of an associated License and Services Agreement (the "LSA") which governs the SOW. On February 25, 2025, the parties entered into a termination agreement related to the original LSA and SOW and concurrently entered into a revised LSA and revised SOW, collectively, the Clean Room Agreement, primarily to clarify the location of the clean room subject to the arrangement. The term of the Clean Room Agreement is 22 months and commenced on March 1, 2025. Fixed payments are due at the beginning of each calendar quarter and variable amounts related to support services are due monthly based on services provided during the preceding month. Upon execution of the SOW, the Company made a prepayment of approximately $459,000. The Clean Room Agreement may be renewed each year and if renewed, the fixed payment amount may increase yearly by up to 5%.
The Company determined that the Clean Room Agreement is a finance lease. On the commencement date, the Company recorded an initial finance lease right-of-use asset and related lease liability of approximately $3.3 million and $2.8 million, respectively. Included in the $3.3 million finance right-of-use asset is the $459,000 prepayment which was reclassified to the finance lease right-of-use asset on the commencement date. The lease does not provide an implicit rate and therefore the Company used its incremental borrowing rate as the discount rate when measuring the finance lease liability. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. The Company used an incremental borrowing rate consisting of the current prime rate plus 200 basis points for its finance lease.
Operating Leases - General Office Space
The Company's lease for its corporate headquarters (3,169 square feet of office space) commenced on July 1, 2018. In February 2022, the Company entered into an amendment to extend the term of the lease through August 31, 2024. On March 8, 2024, the Company entered into another amendment to extend the term of the lease for three years such that the term now expires on October 31, 2027, and which resulted in additional operating lease liabilities and ROU assets of approximately $0.4 million in March 2024.
MBI, a wholly-owned subsidiary the Company acquired in November 2019, leases general office and laboratory space in Lexington, Massachusetts. The lease commenced on November 1, 2023 for a term of three years, expiring on December 31, 2026.
Under the terms of each lease, the lessee pays base annual rent (subject to an annual fixed percentage increase), plus property taxes, and other normal and necessary expenses, such as utilities, repairs, and maintenance. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. The leases do not require material variable lease payments, residual value guarantees or restrictive covenants.
The leases do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. The Company uses an incremental borrowing rate consisting of the current prime rate plus 200 basis points for operating leases. The depreciable lives of operating leases and leasehold improvements are limited by the expected lease term.
Aggregate Lease Information
The components of lease cost recorded in our condensed consolidated statements of operations were as follows:
Three Months Ended
March 31, 2025		Three Months Ended
March 31, 2024
Operating lease cost
$197,000 $200,000 
Finance lease cost
Amortization of finance lease
150,000 — 
Interest on finance lease liability
19,000 — 
Total lease cost
$366,000 $200,000 
Maturities of our finance and operating lease liabilities as of March 31, 2025 were as follows:
Year
Operating Leases
Finance Lease
Total
2025 (remaining)
$495,000 $921,000 $1,416,000 
2026680,000 1,658,000 2,338,000 
2027130,000 — 130,000 
Total lease payments
1,305,000 2,579,000 3,884,000 
Less: amount representing interest
(133,000)(178,000)(311,000)
Present value of lease liabilities
$1,172,000 $2,401,000 $3,573,000 
The weighted-average remaining lease terms and discount rates related to our leases were as follows:
As of March 31,
20252024
Weighted-average remaining lease term (in years)
Operating leases
2.253.17
Finance lease
1.75— 
Weighted-average discount rate
Operating leases
10.5 %10.5 %
Finance lease
9.5 %— %
Supplemental cash flow information related to our leases was as follows:
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$164,000 $159,000 
Operating cash flows from finance lease
$19,000 $— 
Leased Properties LEASED PROPERTIES
Finance Lease - Clean Room Space
On July 24, 2024, the Company entered into a scope of work (the "SOW") with an unrelated third party for a controlled clean room space in Burlington, Massachusetts. The SOW became effective upon the execution of an associated License and Services Agreement (the "LSA") which governs the SOW. On February 25, 2025, the parties entered into a termination agreement related to the original LSA and SOW and concurrently entered into a revised LSA and revised SOW, collectively, the Clean Room Agreement, primarily to clarify the location of the clean room subject to the arrangement. The term of the Clean Room Agreement is 22 months and commenced on March 1, 2025. Fixed payments are due at the beginning of each calendar quarter and variable amounts related to support services are due monthly based on services provided during the preceding month. Upon execution of the SOW, the Company made a prepayment of approximately $459,000. The Clean Room Agreement may be renewed each year and if renewed, the fixed payment amount may increase yearly by up to 5%.
The Company determined that the Clean Room Agreement is a finance lease. On the commencement date, the Company recorded an initial finance lease right-of-use asset and related lease liability of approximately $3.3 million and $2.8 million, respectively. Included in the $3.3 million finance right-of-use asset is the $459,000 prepayment which was reclassified to the finance lease right-of-use asset on the commencement date. The lease does not provide an implicit rate and therefore the Company used its incremental borrowing rate as the discount rate when measuring the finance lease liability. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. The Company used an incremental borrowing rate consisting of the current prime rate plus 200 basis points for its finance lease.
Operating Leases - General Office Space
The Company's lease for its corporate headquarters (3,169 square feet of office space) commenced on July 1, 2018. In February 2022, the Company entered into an amendment to extend the term of the lease through August 31, 2024. On March 8, 2024, the Company entered into another amendment to extend the term of the lease for three years such that the term now expires on October 31, 2027, and which resulted in additional operating lease liabilities and ROU assets of approximately $0.4 million in March 2024.
MBI, a wholly-owned subsidiary the Company acquired in November 2019, leases general office and laboratory space in Lexington, Massachusetts. The lease commenced on November 1, 2023 for a term of three years, expiring on December 31, 2026.
Under the terms of each lease, the lessee pays base annual rent (subject to an annual fixed percentage increase), plus property taxes, and other normal and necessary expenses, such as utilities, repairs, and maintenance. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. The leases do not require material variable lease payments, residual value guarantees or restrictive covenants.
The leases do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. The Company uses an incremental borrowing rate consisting of the current prime rate plus 200 basis points for operating leases. The depreciable lives of operating leases and leasehold improvements are limited by the expected lease term.
Aggregate Lease Information
The components of lease cost recorded in our condensed consolidated statements of operations were as follows:
Three Months Ended
March 31, 2025		Three Months Ended
March 31, 2024
Operating lease cost
$197,000 $200,000 
Finance lease cost
Amortization of finance lease
150,000 — 
Interest on finance lease liability
19,000 — 
Total lease cost
$366,000 $200,000 
Maturities of our finance and operating lease liabilities as of March 31, 2025 were as follows:
Year
Operating Leases
Finance Lease
Total
2025 (remaining)
$495,000 $921,000 $1,416,000 
2026680,000 1,658,000 2,338,000 
2027130,000 — 130,000 
Total lease payments
1,305,000 2,579,000 3,884,000 
Less: amount representing interest
(133,000)(178,000)(311,000)
Present value of lease liabilities
$1,172,000 $2,401,000 $3,573,000 
The weighted-average remaining lease terms and discount rates related to our leases were as follows:
As of March 31,
20252024
Weighted-average remaining lease term (in years)
Operating leases
2.253.17
Finance lease
1.75— 
Weighted-average discount rate
Operating leases
10.5 %10.5 %
Finance lease
9.5 %— %
Supplemental cash flow information related to our leases was as follows:
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$164,000 $159,000 
Operating cash flows from finance lease
$19,000 $—