In 2021, the Company entered into a noncancelable operating lease for approximately 100,000 square feet in Fremont, California used for laboratory operations and its corporate headquarters. The lease term is 13.5 years and commenced in October 2022. The Company gained early access to the premises for the purpose of constructing and installing tenant improvements, for which the landlord contributed $15.1 million. Such contributions were accounted for as lease incentives and are recognized as reductions to lease expense over the lease term. The lease expires at the end of March 2036 and includes two options to extend the term for a period of five-years per option at market rates. The Company determined the extension options are not reasonably certain to be exercised. The lease includes escalating rent payments.

The Company has a noncancelable operating lease expiring in November 2027 for 31,280 square feet in Menlo Park, California previously used for laboratory operations and its former corporate headquarters. The lease includes escalating rent payments. The Company moved all laboratory operations to the Fremont facility during the third quarter of 2023, resulting in a lease impairment charge at that time. The Company is actively marketing the vacated Menlo Park space for sublease.

in the leases cannot be readily determined. Future lease payments under operating leases as of June 30, 2026 were as follows (in thousands):


	Amount
2026 (remaining six months)	$	3,605
2027		7,189
2028		5,215
2029		5,371
2030		5,533
2031 and thereafter		31,894
Total future minimum lease payments		58,807
Less: imputed interest		(21,709	)
Present value of future minimum lease payments		37,098
Less: current portion of operating lease liability (included in accrued and other current liabilities)		(6,931	)
Long-term operating lease liabilities	$	30,167

Cash paid for operating lease liabilities, included in cash flows from operating activities in the consolidated statements of cash flows, for the six months ended June 30, 2026 and 2025, was $3.6 million and $4.2 million, respectively.

Components of lease costs were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Lease cost
Operating lease cost	$	1,075	$	1,470	$	2,224	$	2,949
Short-term lease cost		-		1		1		2
Variable lease cost		801		537		1,506		907
Total lease cost	$	1,876	$	2,008	$	3,731	$	3,858

As of June 30, 2026, finance lease assets and liabilities were immaterial. As of December 31, 2025, finance lease assets and liabilities were $3.1 million and $3.2 million, respectively. Finance lease cost was immaterial for the three and six months ended June 30, 2026 and nil for the three and six months ended June 30, 2025, respectively.

Finance lease liabilities with payments due within one year are classified as short-term liabilities and reported within the "Accrued and other current liabilities" line in the consolidated balance sheets. Finance lease liabilities with payments due beyond one year are classified as long-term liabilities and reported with the "Other long-term liabilities" line in the consolidated balance sheets.