Operating Lease Commitment

On August 21, 2017, the Company entered into a lease agreement (“August 2017 Lease Agreement”), which was subsequently amended on February 26, 2019 (“February 2019 Lease Agreement”) and October 25, 2019 for commercial lease of office space, pursuant to which the Company has agreed to lease an aggregate total of 63,256 square feet of office space (“Total Premises”). The term of the lease is through November 30, 2026.

Per the terms of the August 2017 Lease Agreement and the February 2019 Lease Agreement, the landlord agreed to reimburse the Company for approximately $2.1 million of leasehold improvements. The reimbursements have been deferred and is recognized as a reduction of rent expense over the term of the lease. Additionally, the August 2017 Lease Agreement and the February 2019 Lease Agreement required a standby irrevocable letter of credit of $0.8 million, which will be reduced, if the Company is not in default under the agreement on the third and fourth anniversary of the commencement date and have unencumbered funds in excess of $50.0 million. As of December 31, 2024, the Company has an unsecured letter of credit for $0.7 million in connection with the lease agreements.

Cash paid for rent expense recorded during the years ended December 31, 2024 and 2023 was $1.7 million and $1.7 million, respectively. Rent expense for the years ended December 31, 2024 and 2023 was offset by $0 and $0.2 million, respectively, of sublease income. The sublease commenced on October 1, 2021 and was terminated on June 24, 2024.