Lease-related costs for the three and six months ended June 30, 2026 and 2025 are as follows (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	458	$	864	$	893	$	1,728
Variable lease cost	223		392		425		823
Total lease cost	$	681	$	1,256	$	1,318	$	2,551

Future minimum lease payments under non-cancellable leases as of June 30, 2026 are as follows (dollars in thousands):


	Remaining Lease Payments
Remainder of 2026	$	1,042
2027	1,996
2028	354
2029	119


Total remaining undiscounted lease payments	3,511
Less: Imputed interest	(258)
Total lease liabilities	3,253
Less: current portion	(1,843)
Long-term operating lease liabilities	$	1,410
Weighted-average remaining lease term (in years)	1.8
Weighted-average discount rate	8.1		%

The following table provides certain cash flow and supplemental cash flow information related to the Company’s lease liabilities for the six months ended June 30, 2026 and 2025 (in thousands):


	Six months ended June 30,
	2026		2025
Operating cash paid to settle operating lease liabilities	$	1,052	$	2,254

On June 18, 2026, we entered into a facility lease agreement (the “Lease Agreement”) with Sterling City Science South Development, LLC for the lease of approximately 54,374 square feet of office, laboratory and manufacturing space located in San Diego, California. The leased premises are expected to replace the Company’s existing San Diego facility.

The Lease Agreement provides for an initial non-cancellable lease term of 120 months. Aggregate minimum cash lease payments under the lease are estimated to be approximately $38.3 million and are not included in the future minimum lease payments table above as the lease had not commenced as of June 30, 2026. The Company has an option to extend the lease term for an additional five-year period, subject to the terms and conditions specified in the Lease Agreement.

The Lease Agreement also provides for a tenant improvement allowance of up to approximately $17.1 million. As of June 30, 2026, the Company has not used any portion of this allowance.

Upon execution of the lease, the Company paid a security deposit of approximately $0.4 million, which is recorded in Other assets on the Condensed Consolidated Balance Sheets and will be applied to the first installment(s) of base rent due under the lease. The Company also provided an additional security deposit in the form of a letter of credit with an initial amount of approximately $2.1 million, which is recorded within Restricted cash, non-current, on the Condensed Consolidated Balance Sheets.

The Company expects the lease to commence on or about September 1, 2027, but no later than November 1, 2027, subject to the completion of tenant improvements and other customary conditions. Upon lease commencement, the Company will recognize a right-of-use asset and corresponding lease liability in accordance with ASC 842.