The Company is the lessee in all of its lease arrangements. The Company did not enter into any leases with related parties during the presented periods. The Company makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating right-of-use asset and lease liability values. These assumptions and judgments may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate or the Company’s intent to exercise or not exercise options available in lease contracts.

In September 2025, the Company entered into the fourth amendment to its single non-cancelable operating lease with Eastland Regency, L.C. to extend the current term of its office lease through June 30, 2034 and has redesigned its use of the facility to reduce its total leased space to approximately 20,400 square feet of office and laboratory space. The implicit rate provided in the Company’s operating lease is not readily determinable. As such, the Company uses its incremental borrowing rate to calculate the present value of its operating lease liabilities. The amended lease includes a termination right that permits the Company to terminate the lease if it moves to another space of at least 30,000 square feet that is managed by the landlord of its current office space. The Company does not have sufficient information at this time to determine if or when it will exercise the termination right but may exercise the termination right at such point that the Company determines it needs to expand into additional space.

The Company leases certain equipment related to its information technology infrastructure and laboratory operations. All of the Company’s current finance leases include bargain purchase options that the Company is reasonably certain to exercise. The Company has elected not to separate lease and non-lease components for its equipment leases. The rates implicit in the Company’s finance leases are determinable, and the Company uses those rates to calculate the present value of its finance lease liabilities.

The following table shows right-of-use assets and lease liabilities and the associated financial statement line items as of June 30, 2026 and December 31, 2025 (in thousands):


		June 30,		December 31,
Lease-Related Assets and Liabilities	Financial Statement Line Items	2026		2025
Right-of-use assets:
Operating leases	Other assets	$	2,306	$	2,402
Finance leases	Property and equipment, net		229		385
Total right-of-use assets		$	2,535	$	2,787

Lease liabilities:
Operating leases	Operating lease obligation, net of current portion		3,001		2,337
Finance leases	Finance lease obligation, current portion		—		2
Total lease liabilities		$	3,001	$	2,339

Lease costs and other information consisted of the following (in thousands, except terms and rates):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	77		$	78		$	155		$	157
Interest on lease liabilities		—			1			—			3
Operating lease cost		117			159			235			318
Total lease cost	$	194		$	238		$	390		$	478

Other information
Finance leases:
Operating cash outflows	$	—		$	1		$	—		$	3
Financing cash outflows	$	—		$	58		$	2		$	173
Weighted-average remaining lease term (in years)		—			0.2			—			0.2
Weighted-average discount rate		0.0	%		8.0	%		0.0	%		8.0	%
Operating leases:
Operating cash outflows	$	—		$	166		$	—		$	333
Right-of-use assets obtained in exchange for lease liabilities	$	12		$	—		$	29		$	—
Weighted-average remaining lease term (in years)		8.0			0.5			8.0			0.5
Weighted-average discount rate		8.8	%		7.5	%		8.8	%		7.5	%

Future minimum lease payments for the Company’s leases as of June 30, 2026, were as follows (in thousands):


	Operating Leases
2026	$	280
2027		576
2028		594
2029		611
2030		630
Thereafter		2,359
Total minimum lease payments		5,050
Less: imputed interest		(1,453	)
Less: remaining lease incentives		(596	)
Present value of future lease payments		3,001
Less: current portion		—
Long-term portion	$	3,001

The Company has agreed to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving at the Company’s request in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company purchases director and officer insurance coverage that provides for corporate reimbursements of covered obligations that limits the Company’s exposure and enables it to recover a portion of potential future amounts paid. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements since these obligations are not capped but are conditional to the unique facts and circumstances involved. Accordingly, the Company has no liabilities recorded for these agreements as of June 30, 2026 and December 31, 2025. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements.

The Company is not currently a party to any material litigation or other material legal proceedings. The Company may, from time to time, be involved in various legal proceedings arising from the normal course of business activities, and an unfavorable resolution of any of these matters could materially affect the Company’s future results of operations, cash flows, or financial position.