11. Leases

Operating Lease

In December 2015, the Company entered into a lease (the “2016 Lease”) of office and laboratory space located in South San Francisco, California for the Company’s corporate headquarters. The 2016 Lease has an initial term of ten years through 2026 and the Company has an option to extend the initial term for an additional five years at the then fair rental value as determined pursuant to the 2016 Lease.

In addition, the Company obtained a standby letter of credit (the “Letter of Credit”) in an amount of approximately $0.9 million, which may be drawn by the Landlord to be applied for certain purposes upon the Company’s breach of any provisions under the 2016 Lease. The Company recorded $0.9 million of cash securing the Letter of Credit as non-current restricted cash on its balance sheet as of December 31, 2025 and 2024.

In March 2023, the Company entered into a sublease agreement for a portion of its existing office and laboratory space. The sublease is classified as an operating lease whereby sublease income, which is included as an offset against operating lease cost, is recognized on a straight-line basis over the sublease term that expires on September 30, 2026. In January 2026, the Company and the sublease tenant entered into a sublease termination agreement, resulting in an early termination of the sublease in February 2026. Pursuant to the sublease termination agreement, the sublessee will pay an aggregate of $0.6 million as final settlement of the sublease. The $0.6 million was collected in January 2026.

In November 2025, the Company entered into a lease (the “2026 Lease”) of office and laboratory space located in Emeryville, California for the Company’s corporate headquarters. The contractual commencement date for the 2026 Lease will be October 1, 2026. The 2026 Lease will expire on December 31, 2029, and the Company has two options to extend the term, each for an additional two years, at the then fair market rent as determined under the term of the 2026 Lease. The Company is not reasonably certain to exercise the options. Under the terms of the lease, the Company is obligated to make aggregate future minimum lease payments totaling approximately $5.7 million over the lease term payable starting from January 2027, exclusive of operating expenses and other common area charges. The Company determined that the lease commencement date for accounting purpose is April 1, 2026, when the office and laboratory space is expected to be available for use by the Company to begin construction of its leasehold improvements.