In February 2020, the Company entered into a seven-year agreement to occupy 6,647 square feet of office space in South San Francisco, California. The lease commenced on July 10, 2020 when the Company took occupancy of the leased space and the lease was determined to be operating classified. Under the agreement, the Company is required to make approximately $2,300 in total minimum payments during the term. The Company is also required to pay its proportionate share of building operating and tax costs after the first year under lease which are not included in the measurement of the lease and treated as variable lease cost and expensed when incurred.

As of June 30, 2024, the total lease liability was $954, of which $679 was noncurrent and $275 was short-term and classified within “Accrued expenses and other current liabilities” on the condensed consolidated balance sheet.

For the three and six months ended June 30, 2024 and 2023, the components of operating lease cost were as follows:


		Three Months Ended June 30,								Six Months Ended June 30,
			2024				2023				2024				2023
Lease cost:	Statement of Operations Classification:
Operating lease cost	General and administrative expense	$		81		$		81		$		162		$		162
Short-term lease cost	General and administrative expense			36				36				90				89
Variable operating lease cost	General and administrative expense			—				12				26				19
Total operating lease cost		$		117		$		129		$		278		$		270

Other information:
Cash paid for amounts included in the measurement of operating lease liability		$		81				79		$		163		$		159
Weighted average remaining lease term (years)				3.1				4.1				3.1				4.1
Weighted average discount rate				7.6	%			7.6	%			7.6	%			7.6	%

The Company has entered into agreements with contract research organizations and contract manufacturing organizations to provide services in connection with its nonclinical studies and clinical trials and to manufacture clinical development materials. As of June 30, 2024, the Company had non-cancelable purchase and other commitments under these agreements totaling $40,680.

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments

the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of June 30, 2024.

The Company does not have contingency reserves established for any litigation liabilities. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses costs related to such legal proceedings as they are incurred.

On April 26, 2024, a purported stockholder of the Company filed a lawsuit, captioned Klobus v. Akero Therapeutics, Inc., No. 3:24-cv-02534 (N.D. Cal.), in the U.S. District Court for the Northern District of California against the Company and three of its officers. The suit purports to be filed on behalf of a class of stockholders who purchased or otherwise acquired Company common stock between September 13, 2022 and October 9, 2023. The suit asserts claims under the Exchange Act for alleged misstatements and omissions regarding the Company’s Phase 2b SYMMETRY study. The complaint seeks damages in an unspecified amount. On June 25, 2024, certain purported stockholders of the Company filed motions to be appointed lead plaintiff in the lawsuit and have their counsel appointed as lead counsel. The court has not yet ruled on those motions. Due to the early stage of this matter, it is not possible to determine the probability or amount of potential related costs. The Company intends to vigorously defend against the lawsuit.