8. Commitments and Contingencies 

Operating Lease

The Company leases office and lab space in San Diego, California under a non-cancelable operating lease (“Science Center Drive Lease”). The lease commenced in  March 2018 and has a 5-year initial term. The lease includes a renewal option, which includes an option to renew for five additional years. During 2021, the Company amended the lease to include additional space in the building with the right to use the new space beginning in  October 2021, for an additional 3 years.

In  October 2023, the Company executed a noncancelable operating lease for new premises to be used for office, research and development and laboratory purposes (“General Atomics Court Lease”), with the same landlord as the Science Center Drive Lease. The General Atomics Court Lease commenced for accounting purposes in  October 2024 when the Company took control of the premises and has a 5-year initial term from the commencement date. The General Atomics Court Lease has a five-year term with an option to extend for another three-year period subject to certain conditions, which the Company is not reasonably certain to exercise and therefore was not considered in determining the right-of-use (“ROU”) assets and lease liabilities balance. 

As a result of the new lease, the Company received rent abatement from  January to  October 2024 on the Science Center Drive Lease. This resulted in a modification of the Science Center Drive Lease and a remeasurement of the existing lease liability and the associated right-of-use asset in  October 2023. As a result, $0.6 million from the payments of the new lease were allocated to the Science Center Drive Lease, based on a relative standalone selling price analysis. 

The Company’s operating lease ROU asset and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. Upon commencement of the new lease, in  October 2024, the Company recorded an ROU asset and lease liability of approximately $5.6 million. This includes the $0.6 million allocation, which led to a corresponding decrease in the ROU asset value for the new lease. The lease agreement includes variable payments which are not included in the measurement of the ROU assets and lease liability. 

Below is a summary of the Company’s operating lease right-of-use assets and lease liabilities (in thousands, except for years and %):

During the three months ended  June 30, 2025 and 2024, the Company recognized $0.4 million and $0.3 million, respectively, in operating lease expenses, which are included in operating expenses in the Company's statements of operations and comprehensive loss. During the six months ended  June 30, 2025 and 2024, the Company recognized $0.8 million and $0.6 million, respectively, in operating lease expenses, which are included in operating expenses in the Company's statements of operations and comprehensive loss.

Supplemental cash flow information related to operating leases are as follows (in thousands):

Future minimum lease payments for the Company’s operating lease liabilities as of June 30, 2025 are as follows (in thousands):

Litigation

From time to time, the Company  may become involved in various legal proceedings and claims that arise in the ordinary course of our business activities. As of June 30, 2025, the Company was not currently a party to any material legal proceedings. 

Other Commitments

The Company has various manufacturing, clinical, research and other contracts with vendors in the conduct of the normal course of its business. Such contracts are generally terminable with advanced written notice and payment for any products or services received by the Company through the effective time of termination and any non-cancelable and non-refundable obligations incurred by the vendor at the effective time of the termination. In the case of terminating a clinical trial agreement at a particular site, the Company would also be obligated to provide continued support for appropriate medical procedures at that site until completion or termination.