In June 2020, the Company executed a sublease agreement for 6,782 square feet of office and laboratory space, which was set to expire on December 30, 2021. In March 2021, the Company amended its sublease agreement, increasing the leased space by 2,495 square feet to 9,277 square feet and monthly rent to $12,000. In April 2022, the lease term was extended to December 31, 2024. In addition, the Company’s leased space was increased to 18,170 square feet commencing in July 2022, and the rental payments were increased by an equally proportionate amount to reflect the increase in floor space. The monthly rent is subject to annual increases through the lease term. The Company is required to pay base rent expense as well as its proportionate share of the facilities operating expenses. The non-lease components, consisting primarily of common area maintenance, are paid separately based on actual costs incurred. Therefore, the variable non-lease components were not included in the ROU assets and lease liabilities and are reflected as expense in the period incurred. The incremental borrowing rate used to calculate the Company’s ROU assets and lease liabilities is 4%. The incremental borrowing rate was estimated based on the Company's estimated borrowing rate on a collateralized loan. As of September 30, 2024, the remaining ROU assets and lease liabilities were $0.1 million and $0.1 million, respectively. As of December 31, 2023, the remaining ROU assets and lease liabilities were $0.3 million and $0.3 million, respectively.

Under the facility sublease, the Company recognized rent expense of $81,000 and $81,000 for the three months ended September 30, 2024 and 2023, respectively, and $244,000 and $244,000 for the nine months ended September 30, 2024 and 2023,

respectively. As of September 30, 2024, the future minimum lease payments under the facilities operating sublease were as follows (in thousands):


	As of
	September 30, 2024
Year ending December 31,
2024 (remaining three months)	$	85
Thereafter		—
Total future minimum lease payments		85
Less: amount representing interest		—
Present value of lease liabilities		85
Less: current portion of lease liabilities		(85	)
Lease liabilities, non-current	$	—

In September 2024, the Company entered into a non-cancellable operating lease (the "Lease") with Crestview, LLC. Under the terms of the Lease, the Company will lease approximately 20,011 rentable square feet of office and laboratory space from January 1, 2025 through December 31, 2026, with a renewal option for an additional term of five years. Upon commencement, the Lease will replace the Company's existing sublease for more space in the same location. There were no modifications to the Company's existing sublease as a result of executing the Lease. The monthly base rent upon commencement will be $33,000, with a 50% rent abatement for the first month’s rent, and the monthly base rent will increase 3.5% annually thereafter. The Company will record the ROU asset and lease liability related to the Lease upon commencement in January 2025.

No impairment losses were recognized during the three and nine months ended September 30, 2024 and 2023.