v3.25.2
Operating Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Operating Leases Operating Leases
Lessee Accounting
The Company’s operating leases are for the corporate headquarters located in South San Francisco, California (“HQ lease”) and for additional office and laboratory space located in Alameda, California (“Alameda lease”). The HQ lease has an initial term of eight years expiring in 2027, with an option to renew for an additional eight years unless canceled by either party thereafter. The Alameda lease has an initial term of eleven years expiring in 2032, with an option to renew the lease for up to two additional terms of five years. The exercise of these renewal options is not recognized as part of the right-of-use assets and lease liabilities, as the Company did not conclude, at the commencement date of the leases, that the exercise of renewal options or termination options was reasonably certain.
Lease costs are summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Operating lease cost$1,284 $1,315 $2,572 $2,631 
Variable lease cost (1)
269 235 549 503 
Short-term lease cost6 8 12 17 
Total lease cost$1,559 $1,558 $3,133 $3,151 
(1)Variable lease costs comprise primarily of common area maintenance charges for the operating leases, which is dependent upon usage.
Supplemental cash flow information related to the leases was as follows:
Six Months Ended June 30,
(in thousands)20252024
Operating cash flows net outflows from operating lease$(3,695)$(3,583)
Weighted-average remaining lease terms and discount rates were as follows:
June 30, 2025
Weighted-average remaining lease term (years)6.3
Weighted-average discount rate9.2 %
As of June 30, 2025, maturities of lease liabilities were as follows:
(in thousands)
2025, for the remainder of the year$3,783 
20267,712 
20275,769 
20284,855 
20295,000 
20305,150 
Thereafter9,379 
Total undiscounted lease payments41,648 
Less imputed interest(10,337)
Total lease liabilities$31,311 
Lessor Accounting
GeneFab Subleases - Related Party (Note 12)
On August 7, 2023, the Company entered into a sublease with GeneFab to sublease the facility included in the Alameda lease, expiring in September 2032. The facility supports the clinical manufacturing of the Company’s chimeric antigen receptor natural killer (CAR-NK) programs, including SENTI-202. Total undiscounted payments to be received by the Company over the term of the Alameda lease sublease are approximately $44.1 million.
On June 12, 2024, the Company entered into a sublease with GeneFab for a portion of the Company’s HQ lease. Total undiscounted payments to be received by the Company over the term of the HQ lease sublease are approximately $1.3 million.
As of June 30, 2025 and December 31, 2024, the Company had $2.9 million and $1.0 million receivable from GeneFab related to the sublease rent payments, respectively, which was recorded in GeneFab receivable - related party on the condensed consolidated balance sheets.
BKPBIOTECH and JLSA2 Therapeutics Sublease
The Company subleased a portion of the Company’s HQ lease to BKPBIOTECH, Inc. and JLSA2 Therapeutics, Inc. The subleases commenced in October 2024 and will expire on April 30, 2027. Total undiscounted payments to be received by the Company over the term of the HQ lease sublease are approximately $1.3 million. The sublease contains customary events of default, representations, warranties and covenants.
As of June 30, 2025, maturities of the Company’s sublease payments were as follows:
(in thousands)
2025, for the remainder of the year$2,770 
20265,604 
20275,094 
20284,891 
20295,037 
20305,188 
Thereafter8,070 
Total undiscounted sublease payments$36,654 
A summary of total sublease income was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Sublease income - base rent$1,435 $1,240 $2,852 $2,443 
Sublease income - variable359 347 833 604 
Total sublease income (1)
$1,794 $1,587 $3,685 $3,047 
(1)For the three and six months ended June 30, 2025, $1.6 million and $3.3 million, respectively, was recorded in GeneFab sublease income - related party, and $0.2 million and $0.4 million, respectively, was recorded in other income, on the condensed consolidated statement of operations. For the three and six months ended June 30, 2024, all sublease income was recorded in GeneFab sublease income - related party on the condensed consolidated statement of operations.