The Company has entered into various operating lease agreements and a finance lease agreement, primarily relating to the Company's office, laboratory, and manufacturing space.

In connection with the Company’s restructuring initiatives, the Company entered into a lease termination agreement on February 28, 2024 with the landlord for the facility in Salt Lake City, as further described under the heading “Restructuring Expenses” in Note 2 (Summary of Significant Accounting Policies). The Company continued to lease the property through June 2024.

In January 2025, the Company entered into a lease termination agreement with the landlord for the facility in Pleasanton, California, that resulted in a one-time termination fee of approximately $0.3 million in the first quarter of 2025. The Company continued to lease the property through the end of January 2025. The Company accounted for the lease amendment as a lease termination and recorded a gain of $0.4 million during the year ended December 31, 2025. Further, the restricted cash of $0.4 million held under the letter of credit related to the lease assumed in the acquisition of Purigen in 2022 expired concurrently with the payment of the above termination fee.

In June 2025, the Company executed an amendment to its headquarters facility to extend the lease term through December 2030. The Company accounted for the lease amendment as a lease modification and recorded a gain of $0.1 million during the year ended December 31, 2025.

For all leases, the Company has the ability to enter into renewal negotiations, prior to the lease end date, with no specific terms. At this time, it is not reasonably certain that we will extend the term of the lease and therefore the renewal period has been excluded from the aforementioned ROU asset and lease liability measurements. The leases are subject to variable charges for common area maintenance and other costs that are determined based on actual costs and includes certain lease incentives such as tenant improvement allowances. The base rent for the leases is subject to an annual increase each year. Rent expense is being recognized on a straight-line basis over the term of the lease. The Company’s estimated incremental borrowing rate summarized in the table below was used in its present value calculations as the operating and finance leases do not have a stated rate and the implicit rate was not readily determinable. In determining the incremental borrowing rate, the Company considered the interest rate of its prior year term loans as well as publicly available data for discount rates used by peer companies.

Supplemental information pertaining to the Company’s leases in which the Company is the lessee is as follows:


	Year Ended December 31,
	2025			2024
Cash payments included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,410,000		$	2,754,000
Operating cash flows from finance leases	$	267,000		$	271,000
Financing cash flows from finance leases	$	71,000		$	58,000
Weighted-average remaining lease term:
Operating leases	4.93 years			1.54 years
Finance leases	15.17 years			16.17 years
Weighted-average discount rate:
Operating leases		10.9	%		9.1	%
Finance leases		7.1	%		7.1	%
Noncash lease liabilities resulting from obtaining right-of-use assets
Operating leases	$	2,966,000		$	—

The following table provides the components of the Company’s lease cost:


	Year Ended December 31,
	2025			2024
Operating leases
Operating lease costs	$	1,517,000		$	2,632,000
Variable lease costs		652,000			791,000
Total rent expense		2,169,000			3,423,000
Finance lease
Amortization of right of use assets		204,000			204,000
Interest on lease liabilities		267,000			271,000
Variable lease costs		38,000			32,000
Total finance lease costs		509,000			507,000
Gross sublease income		(178,000	)		(176,000	)
Total lease costs	$	2,500,000		$	3,754,000

The future minimum payments under non-cancellable operating and finance leases as of December 31, 2025, are as follows:


	Operating Leases			Finance Lease
2026		782,000			346,000
2027		769,000			357,000
2028		804,000			365,000
2029		840,000			373,000
2030		1,052,000			382,000
Thereafter		—			4,474,000
Total future lease payments		4,247,000			6,297,000
Less: imputed interest		(1,061,000	)		(2,568,000	)
Total lease liabilities		3,186,000			3,729,000
Less: lease liability, current portion		697,000			249,000
Lease liability, net of current portion	$	2,489,000		$	3,480,000

During the year ended December 31, 2025, the Company operated under an agreement with its instrument contract manufacturer under which it made weekly deposits for future inventory purchases through November 21, 2025. Total payments during the year ended December 31, 2025 were $1.9 million. The payments created a deposit for inventory Bionano purchased above the 2025 minimum order quantity and guaranteed the availability of certain raw materials previously purchased by the contract manufacturer to build instruments.

The 2024 Workforce Reductions described in Note 2 (Summary of Significant Accounting Policies) comprised primarily of severance payments and wages for the 60-day notice period in accordance with the California Worked Adjustment and Retraining Notification (“WARN”) Act.

There were no restructuring charges incurred for the year ended December 31, 2025. The following is a summary of restructuring charges associated with the reduction in force for the year ended December 31, 2024 including severance and other exit related costs:


	Year Ended December 31,
	2024
Severance	$	5,475,000
Lease related expenses		374,000
Contracted services and consulting		2,173,000
Total restructuring charges included in operating expenses	$	8,022,000
COGS restructuring	$	157,000
Total restructuring charges	$	8,179,000

The following restructuring liability activity was recorded in connection with the reductions in force for the year ended December 31, 2025 included within accrued expenses on the consolidated financial statements:


Accrued restructuring as of January 1, 2024	$	83,000
Restructuring charges incurred during the period	$	8,179,000
Cash payments	$	(7,701,000	)
Accrued restructuring as of December 31, 2024	$	561,000
Restructuring charges incurred during the period		—
Cash payments	$	(302,000	)
Accrued restructuring as of December 31, 2025	$	259,000

From time to time, the Company may be subject to potential liabilities under various claims and legal actions that are pending or may be asserted. These matters arise in the ordinary course and conduct of the business. The Company regularly assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in the consolidated financial statements. An estimated loss contingency is accrued in the consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the Company’s assessment, it currently does not have any material loss exposure as it is not a defendant in any material claims or legal actions.