10. Leases

2016 Lease 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 September 2026 and the Company had 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 prior to its expiration on December 31, 2026, 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 current restricted cash and non-current restricted cash on its balance sheets as of June 30, 2026 and December 31, 2025, respectively. 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 paid an aggregate of $0.6 million as final settlement of the sublease, of which $0.2 million was included as an offset against operating lease cost for the first quarter of 2026.

During the three and six months ended June 30, 2026, under the 2016 Lease, rent expense was $1.2 million and $2.2 million, respectively and related variable lease cost was $0.7 million and $1.4 million, respectively. As of June 30, 2026 and December 31, 2025, the operating lease ROU asset was $1.1 million and $3.4 million, respectively. The lease liability all due within 2026 was $1.4 million and $4.2 million as of June 30, 2026 and December 31, 2025, respectively.

2026 Lease Operating Lease

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 term for the 2026 Lease is October 1, 2026 to December 31, 2029. The Company determined that the lease commencement date for accounting purposes is April 1, 2026, when the office and laboratory space is available for use by the Company to begin construction of its leasehold improvements, and resulted in recognition of approximately $4.1 million lease liabilities and the related right of use assets. The Company expects to utilize the full amount of the one-time tenant improvement allowance of $0.4 million receivable from landlord. 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. In addition, the Company has provided a security deposit of $0.5 million or letter of credit with anticipated reduction to $0.3 million at the end of December 2026, which may be drawn by the Landlord to be applied for certain purposes upon the Company’s breach of any provisions under the 2026 Lease. The Company has recorded the $0.5 million Letter of Credit as non-current restricted cash on its balance sheet as of June 30, 2026 and December 31, 2025.

Rent expense is recognized on a straight-line basis over the term of the lease and accordingly the Company records the difference between cash rent payments and the recognition of rent expense against the operating lease ROU asset. Rent expense under the 2026 Lease during the three months ended June 30, 2026 was $0.4 million.