In May 2021, the Company entered into a lease agreement for approximately 10,000 square feet of office space located in South San Francisco, California. The lease commenced on June 6, 2021 and expires on August 31, 2026. The lease does not provide an option to extend after it expires. The total lease payments for the life of the lease are approximately $2.0 million. The Company classified the lease as an operating lease.

In May 2026, the Company entered into the first amendment to the lease agreement for the office space located in South San Francisco, California, which extended the lease term by six months from September 1, 2026 to February 28, 2027. This lease modification increase total lease payments by $0.2 million. The Company continues to classify the lease as an operating lease.

In February 2022, the Company entered into a lease agreement totaling approximately 11,074 square feet of office and laboratory space located in Palo Alto, California. The lease consists of two premises and expires in February 2030. The lease provides for an option to extend for two years after expiration. The lease for one of the premises commenced in February 2022 and the lease for the second premises commenced in April 2022. The total lease payments for the life of the lease are approximately $6.9 million. The Company is also responsible for leasehold improvement costs related to the second premises, which totaled to $2.3 million, of which $1.5 million is to be paid with interest at a rate of 7% per annum as additional payments over the life of the lease. The Company classified the lease as an operating lease.

The Company has determined it operates in a single operating segment and has one reportable segment. The Company reviews for indicators of impairment on a quarterly basis, including changes in how its property is being used.

In May 2025, the Company made a decision to sublease its leased property in Palo Alto. The Company determined that the change in how this building is being used could indicate impairment. The Company identified this to-be-sublet property as a separate asset group for purposes of long-lived asset impairment assessment. The Company concluded that the carrying value of this to-be-sublet property asset group was not recoverable and the estimated fair value of this asset group was below its carrying value. The Company applied a discounted cash flow method to estimate fair value of its right-of-use (ROU) asset and leasehold improvements. Based on this analysis, the Company concluded the fair value of the ROU asset and leasehold improvements of $1.5 million was lower than its net book value of $4.7 million. The Company recognized a pre-tax long-lived asset impairment charge of $3.2 million on the ROU asset and leasehold improvements in the second quarter of 2025.

In May 2026, the Company entered into a lease termination agreement for the office and laboratory space located in Palo Alto, California. Pursuant to the lease termination agreement, the Company vacated the premises in June 2026 and paid total termination fees of $2.4 million, which included brokerage costs. Since the termination fees were not already included in the lease payments, the termination fees were recognized as a loss on lease termination. The Company derecognized operating lease liabilities of $3.8 million and operating lease assets of $1.3 million associated with the terminated lease, resulting in a gain of $2.5 million. The net impact is a gain on lease termination of $0.2 million, which was recorded within operating expense in the condensed consolidated statement of operations for the three and six months ended June 30, 2026.

The following table presents the maturities and balance sheet information of the Company’s lease liabilities as of June 30, 2026 (in thousands, except lease term and discount rate):


	June 30, 2026
	Operating Leases			Finance Leases
2026	$	189		$	528
2027		57			616
2028		—			—
2029		—			—
2030		—			—
Thereafter		—			—
Total lease payments		246			1,144
Less: imputed interest		(2	)		(55	)
Total lease liabilities	$	244		$	1,089

Lease liabilities: current (i)	$	244		$	1,002
Lease liabilities: non-current (ii)		—			87
Total lease liabilities	$	244		$	1,089

Weighted average remaining lease term (in years)		0.7			1.1
Weighted average discount rate		3.7	%		8.5	%

(i)

Current lease liabilities are presented within accrued expenses and other current liabilities on the condensed consolidated balance sheets.

(ii)

Non-current lease liabilities are presented within other non-current liabilities on the condensed consolidated balance sheets.

The following table presents the components of lease costs for the three months and six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2026			2025		2026		2025
Operating lease cost	$	136		$	286	$	363		578
Variable lease cost and other, net (i)		(40	)		135		78		247
Short-term lease cost		30			—		30		—
Finance lease cost:
Amortization of right-of-use assets		239			261		478		523
Interest		27			50		58		105
Total lease costs	$	392		$	732	$	1,007	$	1,453

(i)

The variable lease cost and other, net is comprised primarily of common area maintenance charges or refunds for the operating lease, which are dependent on usage. These costs are classified as operating lease expense due to the election to not separate lease and non-lease components. These costs were not included within the measurement of the Company’s operating lease right-of-use assets and operating lease liabilities.

The following table presents the supplemental cash flow disclosures for cash paid for leases for the six months ended June 30, 2026 and 2025 (in thousands):


	Six Months Ended
	June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	519	$	648
Operating cash flows from finance leases	$	73	$	128
Financing cash flows from finance leases	$	543	$	544
Right-of-use asset acquired under leases
Operating leases	$	168	$	—