Commitments and Contingencies

9 Months Ended

Sep. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

6. COMMITMENTS AND CONTINGENCIES

Operating Leases

As of September 30, 2025, the Company leases office and laboratory facilities under operating leases, which expire at various dates through 2027. The Company has $678 thousand in letters of credit outstanding as security on certain of these leases. As part of its adoption of ASC 842, the Company recorded operating ROU assets and operating lease liabilities for these leases as of January 1, 2022.

The Company entered into an operating sublease agreement on January 18, 2023 (the “Sublease”) with respect to part of its existing Boston office and laboratory facilities (the “Head Lease”). The Company accounted for the Head Lease and the Sublease as separate contracts and there was no effect on the ROU asset or lease liability associated with the Head Lease. The Sublease ended on December 31, 2024. The Head Lease rent expense is presented separately from income related to the Sublease and both are reported as components of operating expenses on the condensed consolidated statements of operations and comprehensive loss. The Company recorded $288 thousand of income related to the Sublease for the nine months ended September 30, 2024.

Finance Leases

The Company leases research equipment and furniture under finance leases.

The following table contains a summary of the lease costs recognized under ASC 842 pertaining to the Company’s finance and operating leases for the nine months ended September 30, 2025 and 2024 (in thousands):


	For the Nine Months Ended September 30,
	2025		2024
Lease Cost:
Amortization of finance ROU assets	$	13	$	579
Interest on finance lease liabilities		29		73
Operating lease cost		1,269		1,386
Variable lease cost		640		491
Total lease costs		1,951		2,529
Operating Sublease income		—		(288	)
Total lease costs, net	$	1,951	$	2,241

During the nine months ended September 30, 2025, the Company disposed of research equipment classified as a ROU asset under a lease agreement. The ROU asset was sold, resulting in a loss of $43 thousand, which is included in the other expense line in the condensed consolidated statements of operations and comprehensive loss for the period.

The following table contains a summary of other information pertaining to the Company’s finance and operating leases for the nine months ended September 30, 2025 and 2024 (in thousands, except lease term and discount rate):


	For the Nine Months Ended September 30,
	2025		2024
Other Operating Lease Information:
Operating cash outflows for operating leases	$	1,320	$	1,400
Operating cash inflows for operating subleases	$	—	$	(300	)
Operating cash outflows for finance leases	$	29	$	73
Financing cash outflows from finance leases	$	677	$	604

Weighted average remaining lease term
Operating leases	1.1 years		2.0 years
Financing leases	0.6 years		1.4 years

Weighted average discount rate
Operating leases	7.6%		7.7%
Financing leases	10.1%		8.4%

The following table presents the maturity of the Company’s operating and finance lease liabilities as of September 30, 2025 (in thousands):


	Operating		Financing
2025	$	428	$	116
2026		1,413		81
2027		59		—
Total future minimum lease payments		1,900		197
Less amount representing interest		72		4
Total lease liabilities	$	1,828	$	193

License Agreements

In the normal course of business, the Company enters into licensing agreements with various parties to obtain the right to make, use, and sell licensed products currently in development.

Litigation

The Company records estimated losses from loss contingencies, such as a loss arising from a litigation, when it determines that it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Litigation is subject to many factors that are difficult to predict so that there can be no assurance, in the event of a material unfavorable result in one or more claims, the Company will not incur material costs.

Sensei Biotherapeutics, Inc. 10-Q