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1. The Company

4D Molecular Therapeutics, Inc. (the "Company") was formed as a limited liability company in September 2013 under the name 4D Molecular Therapeutics, LLC. The Company changed its name and converted into a corporation which was incorporated in the state of Delaware in March 2015. The Company is a clinical-stage biotherapeutics company harnessing the power of directed evolution for targeted genetic medicines.

Initial Public Offering

In December 2020, the Company sold and issued 9,660,000shares of common stock at a price to the public of $23.00per share, which included shares sold upon the underwriters' exercise of their overallotment option to purchase 1,260,000additional shares. The Company received an aggregate of $204.7million in net proceeds, after deducting underwriting discounts and commissions and offering costs.

Upon the closing of the Company's initial public offering in December 2020 (the "IPO"), all outstanding shares of redeemable convertible preferred stock automatically converted into 11,575,984shares of common stock. Subsequent to the closing of the IPO, there were noshares of redeemable convertible preferred stock outstanding.

2021 Follow On Public Offering

In November 2021, the Company completed an underwritten public offering ("2021 Offering") in which 4,750,000shares of the Company's common stock were sold at an offering price of $25.00per share pursuant to an effective Registration Statement on Form S-1. The net proceeds from the 2021 Offering were $111.1million, after deducting underwriting discounts and commissions and offering expenses.

2023 Follow On Public Offering

In May 2023, the Company completed its third underwritten public offering (the "2023 Offering") in which 8,625,000shares of the Company's common stock were sold at an offering price of $16.00per share pursuant to an effective Registration Statement on Form S-3. The net proceeds from the 2023 Offering were $129.2million, after deducting underwriting discounts and commissions and offering expenses.

2024 Follow On Public Offering

In February 2024, the Company completed an underwritten public offering (the "2024 Offering") in which 6,586,015shares of the Company's common stock were sold at an offering price of $29.50per share, as well as pre-funded warrants to purchase 3,583,476shares of the Company's common stock at an offering price of $29.4999per underlying share pursuant to an effective Registration Statement on Form S-3. The net proceeds from the 2024 Offering were $281.2million, after deducting underwriting discounts and commissions and other offering expenses. The Company also granted the underwriters the option to purchase up to 1,525,423additional shares of common stock in connection with the offering.

In March 2024, the underwriters exercised their option to purchase 1,259,299additional shares of common stock resulting in net proceeds of $34.9million, after deducting commissions.

Liquidity

The Company has incurred significant losses and negative cash flows from operations and had an accumulated deficit of $526.5millionas of September 30, 2024. The Company believes that its cash and cash equivalents and marketable securities as of September 30, 2024 are sufficient for the Company to fund planned operations for at least one year from the issuance date of these condensed financial statements. The Company has historically financed its operations primarily through the sale of equity

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securities, and to a lesser extent, from cash received pursuant to its collaboration and license agreements. To date, none of the Company's product candidates have been approved for sale, and therefore, the Company has not generated any revenue from product sales. Management expects operating losses and negative cash flows from operations to continue for the foreseeable future. The Company plans to raise additional funding as required based on the status of its clinical trials and projected cash flows. There can be no assurance that, in the event the Company requires additional financing, such financing will be available on terms acceptable to the Company, if at all. Failure to generate sufficient cash flows from operations, raise additional capital and reduce discretionary spending should additional capital not become available could have a material adverse effect on the Company's ability to achieve its business objectives.

2. Summary of Significant Accounting Policies

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Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures. ASU No. 2023-07 is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and must be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adoption of this ASU and does not expect the adoption to have a material impact on the Company's financial statements and the related notes thereto.

In December 2023, the Financial Accounting Standards Board issued ASU No. 2023-09, Improvements to Income Tax Disclosures. The final guidance adds clarifications related to the presentation of rate reconciliation for public business entities and definitions of specific categories in rate reconciliation. These amendments are effective for public business entities for annual periods beginning after December 15, 2024. For other entities, amendments are effective for annual periods beginning after December 15, 2025. The Company expects to make additional disclosures for income taxes upon adoption of ASU No. 2023-09.

3. Fair Value Measurements

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Level 3 Inputs

The fair value of the derivative liability is based on significant inputs not observable in the market, which represent a Level 3 measurement within the fair value hierarchy. The fair value of the derivative liability was determined using a present value analysis with multiple scenarios. In determining the fair value of the derivative liability, the inputs impacting fair value include the change of control payment to Cystic Fibrosis Foundation, the probability of a change of control event, the product status at time of a change of control event and the discount rate. See Note 15 for further discussion on the embedded derivative.

There were notransfers between Level 1, 2 and 3 during the periods presented.

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All marketable securities held as of September30, 2024 had contractual maturities of less than two years. There have been nomaterial realized gains or losses on marketable securities for the periods presented.

The Company manages credit risk associated with its investment portfolio through its investment policy, which limits purchases to high-quality issuers and also limits the amount of its portfolio that can be invested in a single issuer. The Company did not record an allowance for credit losses or other impairment charges related to its marketable securities for any period presented. The Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company further considered the maximum unrealized loss amounts both at the individual instrument level,$3thousand, as well as in aggregate, $9thousand,as of September 30, 2024, as immaterial. These unrealized losses were not attributed to credit risk and were associated with changes in market conditions. The Company periodically reviews its marketable securities for indications of credit losses. The Company anticipates that it will recover the entire amortized cost basis of such securities, and therefore, nocredit loss existed as of September30, 2024.

5. Property and Equipment, Net

All property and equipment are maintained in the United States. Depreciation expense was $1.2million and $1.1million for the three months ended September30, 2024 and 2023, respectively, and $3.6million and $3.1million for the nine months ended September30, 2024 and 2023, respectively.

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6. Accrued and Other Current Liabilities

7. Research and Collaboration Arrangements

The total amount of revenue in the nine months ended September 30, 2024 which was included in deferred revenue at January 1, 2024 was immaterial. The total amount of revenue in the nine months ended September30, 2023 which was included in deferred revenue at January 1, 2023 was $0.7million.

uniQure

In January 2014, the Company and uniQure biopharma B.V. ("uniQure") entered into a Collaboration and License Agreement (the "uniQure Agreement") to collaborate on the discovery and non-clinical research activities related to the Company's Therapeutic Vector Evolution platform in order to generate and validate vectors for gene delivery to treat diseases within the central nervous system and liver (together, the "uniQure Field").

The uniQure Agreement provided uniQure with a research license as well as an exclusive development and commercialization license for each project variant selected for further development. The initial research term is three yearswith an option for uniQure to extend the research term one time for an additional year. Once the Company's research plan has concluded, uniQure is solely responsible for the continued development, manufacturing and commercialization of the project variants as potential product candidates. In October 2016, uniQure exercised its option to extend the research term for an additional year to January 2018. The Company was also required to work exclusively with uniQure in the uniQure Field (the "uniQure Exclusivity Clause").

Pursuant to the uniQure Agreement, the Company received upfront payments of $0.2million, and was entitled to receive (i) contingent payments for the achievement of research and development milestones of up to $5.0million for each licensed product selected under the arrangement, and (ii) royalties in the single digit range on future sales of the potential product candidates and sublicense consideration in the low teens to low thirties range on any future sublicensing arrangements. The Company also received capped research and development service fees based on contractual full-time employee rates per year. In connection with the performance obligations under the uniQure Agreement, the founders of 4D Molecular

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Therapeutics, LLC received equity options to purchase an aggregate of 609,744of uniQure ordinary shares that vested over the initial three-yearterm of the agreement.

The upfront payment of $0.2million was recorded as deferred revenue and was recognized on a ratable basis over the estimated performance period of four years. Payments and reimbursements for research costs were recognized on an as-incurred basis. The options to purchase uniQure shares were deemed to be a noncash component of the arrangement consideration, as the vesting of options is linked to the uniQure Agreement and there is a requirement for the holders of the options to provide services under the agreement. The fair value of the uniQure options, which was estimated to be $10.6million, was recognized ratably as revenue over the estimated performance period of four yearsand the associated compensation expense related to the stock options was recorded as research and development expense.

In August 2019, the Company and uniQure entered into an Amended and Restated Collaboration and License Agreement (the "Amended uniQure Agreement"), which amended and restated the uniQure Agreement, and a separate Collaboration and License Agreement (the "Second uniQure Agreement"). Under these agreements, the Company agreed to transfer incremental rights and services to uniQure in exchange for uniQure eliminating the uniQure Exclusivity Clause and transferring other rights back to the Company.

Under the Amended uniQure Agreement, uniQure continues to have an exclusive license to select AAV capsid variants (the "Selected Variants") in the uniQure Field. uniQure continues to be solely responsible, at its cost, to develop and commercialize the compounds and products containing the Selected Variants. The amended uniQure Agreement eliminated the uniQure Exclusivity Clause in the uniQure Agreement. Furthermore, the contingent payments that the Company was entitled to from uniQure for the achievement of research and development milestones of up to $5.0million for each licensed product selected under the uniQure Agreement were eliminated and sublicense consideration on any future sublicensing arrangements was reduced from the low teens to low thirties percentages to mid-single digit to mid-twenties percentages.

Under the Second uniQure Agreement, the parties agreed to research and develop new AAV capsid variants (the "New Variants") that are not Selected Variants that affect certain targets selected by uniQure (the "uniQure Targets") in the uniQure Field. The Company is solely responsible, at its cost, for the research of the New Variants. The Company granted uniQure an exclusive license to a certain number of the New Variants (the "uniQure New Variants") that affect the uniQure Targets. uniQure is solely responsible, at its cost, to develop and commercialize the compounds and products containing the uniQure New Variants that affect the uniQure Targets (the "Licensed Products"). The Company retains all rights to New Variants in the uniQure Field that affect targets other than the uniQure Targets.

Under both the Amended uniQure Agreement and the Second uniQure Agreement, uniQure will be required to pay the Company royalties on worldwide annual net sales of Licensed Products at a mid-single digit percentage rate, subject to certain specified reductions. uniQure will also be required to pay the Company sublicensing consideration for sublicensing the Company's intellectual property rights licensed under the Amended uniQure Agreement or the Second uniQure Agreement to third parties at a rate between the mid-single digit to mid-twenties. The Company has reciprocal obligations, at the same percentage rates as uniQure, to pay uniQure royalties and sublicensing consideration for sublicensing certain intellectual property rights licensed under the Amended uniQure Agreement or the Second uniQure Agreement to third parties.

The Company concluded that the Amended uniQure Agreement and the Second uniQure Agreement should be accounted for as one combined contract that should be accounted for as a separate contract from the uniQure Agreement given that the incremental licensed intellectual property rights and research and development services are distinct from the rights and services previously transferred to uniQure under the uniQure Agreement and the transaction price increased by an amount that equals the standalone selling price of the incremental rights and services to be transferred to uniQure under the Amended uniQure Agreement and Second uniQure Agreement.

Neither party was required to pay monetary consideration in connection with the execution of the Amended uniQure Agreement or the Second uniQure Agreement or for subsequent performance by the parties under those agreements, notwithstanding the potential future royalty and sublicense consideration

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described above. The fair value of the non-monetary consideration given by uniQure to the Company, for the intellectual property right was $5.1million. This intellectual property right was considered to be an in-process research and development asset with no alternative future use and, accordingly, was written off as acquired in-process research and development expense in the year ended December 31, 2019.

In accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, the incremental transaction price described in the paragraph above was recorded as deferred revenue given that the Company identified one single combined performance obligation, which includes the licenses to the New Variants, research services and participation in the joint steering committee ("JSC"). Revenue is being recognized using the input method based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligation. The Company completed its performance obligation during the third quarter of 2023 and the deferred revenue was recognized as revenue in the same period.

The Company determined the transaction price using the risk adjusted net present value analysis ("rNPV") methodology to value the elimination of the uniQure exclusivity clause and other material rights received by the Company, including the potential royalties the Company would receive from uniQure. The rNPVs incorporate estimates and assumptions including the number of products the Company and uniQure would develop, the risk-adjusted probability of successfully developing a biopharmaceutical product, the probability that uniQure will develop a product, the research and development costs, the potential worldwide sales and associated commercialization costs, corporate tax rate, and discount rate.

During each of the three and nine months ended September30, 2024, the Company recognized norevenue under both of the Amended uniQure Agreement and the Second uniQure Agreement. The Company recognized an immaterial amount and $0.6million during the three and nine months ended September 30, 2023, respectively, under both of the Amended uniQure Agreement and the Second uniQure Agreement. There were noamounts due from uniQure under the uniQure Agreement, Amended uniQure Agreement or Second uniQure Agreement as of September 30, 2024 and December 31, 2023. As of September30, 2024 and December 31, 2023, deferred revenue relating to uniQure was zeroand the aggregate amount of the transaction price allocated to the remaining performance obligation was zero.

Cystic Fibrosis Foundation ("CFF")

In September 2016, the Company entered into an award agreement for the Optimized Adeno-Associated Virus for Lung Epithelia Gene Delivery Development Program with CFF, a non-profit organization dedicated to finding a cure for cystic fibrosis, an inherited disorder that causes disease in the pulmonary airways leading to morbidity and mortality. Under this agreement, CFF contributes funding to help advance the Company's cystic fibrosis research program. The September 2016 grant award agreement was incorporated into a new grant award agreement with CFF in September 2017 with the same objectives, which was subsequently amended in August 2018 and February 2021. In August 2023, the Company executed a third amendment to the agreement (the "August 2023 Amendment"), which modified the research plan, increased the aggregate milestone payments from $3.5million to $6.3million and extended the estimated project completion date. The aforementioned September 2017 agreement and three amendments are collectively referred to as the "CFF Agreement". The August 2023 Amendment represents a contract modification to an existing contract under ASC Topic 606, given the amendment did not include any additional goods or services, and the remaining research activities are not distinct from those previously provided. The August 2023 Amendment did not impact the transaction price, given the increased award amount relates to variable consideration for future milestones that are fully constrained. Accordingly, the contract modification did not result in a revenue adjustment. As of September30, 2024 and December 31, 2023, the Company had achieved milestones totaling $1.8million and $1.7million,

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respectively, under the CFF Agreement. The remaining award amount will be paid by CFF based on achievement of certain development milestones by the Company.

The Company expects to make payments to CFF equal to sixtimes the actual award received by the Company in threeinstallments within the firstfour yearsof the first commercial sale of a product developed under this agreement. The Company also has agreed to make future sales-based milestone payments to CFF of up to threetimes the actual award received upon achieving specified commercialization milestones with respect to the first of any product developed utilizing any compound covered under the CFF Agreement. The CFF Agreement also requires the Company to pay to CFF royalties of a mid-single digit percentage, up to sixtimes the actual award received, on any amounts received by the Company from the sale, license or transfer to a third-party of rights in the technology developed as a result of this collaboration. Any such royalty payments shall be credited against the payments owed by the Company upon first commercial sale. In the event of a change of control of the Company, CFF will receive certain payments, depending on the timing of the change of control and the size of the transaction.

To date, the Company has not developed a commercial product in connection with the CFF Agreement, and it has not licensed, sold or otherwise transferred to another party the product developed under the CFF Agreement or the underlying technology.

If at any time prior to the first commercial sale of a product developed as a result of the CFF Agreement, the Company ceases to use commercially reasonable efforts to develop or commercialize any product under the CFF Agreement for a continuous period of 180consecutive days and fails to present a reasonable plan to resume commercially reasonable efforts, the Company will grant to CFF an irrevocable, exclusive worldwide interruption license under all of the Company's interest in the research plan technology to exploit such product. Any third-party license granted by the Company shall be subject to such interruption license.

The Company identified one performance obligation within the CFF grant agreement for research activities. The Company's contract with CFF does not include a significant financing component.

The Company concluded that the transaction price should not include the variable consideration related to future research milestones as they were considered to be constrained as it is probable that the inclusion of such variable consideration could result in a significant reversal of cumulative revenue in the future. The Company re-evaluates the transaction price and estimated period of performance at each reporting period.

Revenue recognized during each of the three and nine months ended September 30, 2024 was immaterial, while revenue recognized for each of the three and nine months ended September 30, 2023 was $0.2million. As of September 30, 2024 and December 31, 2023, deferred revenue relating to the CFF Agreement was $1.3million and $1.2million, respectively. There were noaccounts receivable from CFF under the CFF Agreement as of September 30, 2024 and December 31, 2023. As of September 30, 2024 and December 31, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligation was $1.3million and $1.2million, respectively. Based on current timelines, the deferred revenue is expected to be recognized as revenue over the next oneto three yearsas the Company performs research services through the completion of IND-enabling studies.

The obligation to make payments to CFF upon a change of control meets the definition of an embedded derivative that is required to be bifurcated and separately accounted for as a derivative liability. See Note 15 for further discussion of the embedded derivative.

Arbor Biotechnologies, Inc.

On December 20, 2023, the Company entered into a co-development and co-commercialization agreement (the "Arbor Agreement") with Arbor Biotechnologies, Inc. ("Arbor"), pursuant to which the Company and Arbor agreed to co-develop and co-commercialize on a fifty-fifty cost-and-profit-sharing basis up to six genetic medicine products to treat central nervous system ("CNS") indications, based on combining the Company's CNS-targeting vectors and Arbor's Cas enzymes and Guide RNAs. The first product

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candidate under the Arbor Agreement will address a molecular target implicated in amyotrophic lateral sclerosis.

The Company will account for its costs related to the co-development and co-commercialization of product candidates under the Arbor Agreement as research and development expenses in the periods in which they are incurred. As of September30, 2024, noShared Product has been designated by the JSC (each as defined in the Arbor Agreement) under the Arbor Agreement, and noresearch and development expenses were incurred related to the Arbor Agreement during the three and nine months ended September30, 2024.

8. License Arrangements

Astellas Gene Therapies, Inc.

On July 5, 2023, the Company entered into a licensing agreement (the "Astellas License Agreement") with Astellas Gene Therapies, Inc. ("AGT"), pursuant to which the Company granted to AGT a license to utilize its intravitreal R100 vector ("4D Vector") to develop and commercialize licensed compounds and licensed products for one genetic target implicated in rare monogenic ophthalmic disease(s), with options to add up to two additional targets implicated in rare monogenic ophthalmic diseases after paying additional option exercise fees. Under the terms of the Astellas License Agreement, the Company has provided its 4D vector technology to AGT to deliver AGT's genetic payloads for the treatment of rare monogenic diseases. AGT will conduct all subsequent research, development, manufacturing, and commercialization activities. As partial consideration for the rights and licenses granted to AGT by the Company under this Astellas License Agreement, AGT paid the Company an upfront amount of $20million, which was received in July 2023. The Company may receive potential future option fees and milestones of up to $942.5million. In addition, the Company is entitled to receive mid-single digit to double-digit, sub-teen royalties on net sales of all licensed products.

Under the Astellas License Agreement, the Company's performance obligation is to grant and make available to AGT the Licensed IP and Licensed Know-How (each as defined in the Astellas License Agreement) with respect to the 4D Vector. In connection with the grant of the license, in July 2023, the Company delivered to AGT the Transferred Material (as defined in the Astellas License Agreement). As of September30, 2024, there was nodeferred revenue and noaccounts receivable relating to the Astellas License Agreement.

Aevitas Therapeutics, Inc. and The Trustees of the University of Pennsylvania

On April 21, 2023, the Company entered into an agreement (the "Aevitas Agreement") with Aevitas Therapeutics, Inc. ("Aevitas"), pursuant to which the Company acquired all of Aevitas' worldwide rights to short-form human complement factor H (sCFH), which the Company plans to use for its 4D-175 product candidate research program. The asset purchase was accounted for as an asset acquisition. As consideration for the Aevitas Agreement, the Company shall pay Aevitas up to approximately $144million in cash upon certain late-stage development, regulatory and sales milestones being achieved plus royalties in the low single digits range on sales of 4D-175. In addition, as part of the Aevitas Agreement, the Company was assigned a License Agreement for sCFH with the Trustees of the University of Pennsylvania, under which the Company shall pay the University of Pennsylvania up to approximately $42million in cash upon certain late-stage development, regulatory and sales milestones being achieved plus royalties in the low single digits range on sales of 4D-175. Noupfront consideration was paid under the Aevitas Agreement.

As of September30, 2024, the Company has not recorded a liability related to contingent consideration for future milestone and royalty payments to either Aevitas or the University of Pennsylvania, as the achievement of such milestones has not occurred and was not deemed probable and product sales have not commenced.

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Regents of the University of California

The Company has exclusive, worldwide license agreements (the "UC Agreements") with the Regents of the University of California (the "UC Regents") relating to the use of certain patents and intellectual property surrounding its core technologies, including Therapeutic Vector Evolution. Pursuant to each of the UC Agreements executed prior to January 2019, the Company was obligated to pay a (i) non-refundable license fee of $5,000upon execution, (ii) a non-refundable license fee of $5,000each year thereafter, until sales of a licensed product are made and royalties are paid to the UC Regents, (iii) reimbursement of domestic and foreign patent filing, prosecution and maintenance fees, and (iv) either $50,000or issuance of a 3% equity interest in the Company upon the closing of the first qualified financing at the option of the UC Regents. The Company's first qualified financing occurred in 2015 and at the election of the UC Regents, the Company issued the UC Regents in January 2016 an amount of common stock equal to 6% of the equity interests in the Company pursuant to the applicable clause in each of the UC Agreements.

Pursuant to an agreement with the UC Regents executed in January 2019 the Company paid a non-refundable license fee of $50,000to the UC Regents upon execution of the agreement. The Company is obligated to pay a non-refundable license fee of $5,000on the one-year anniversary of the contract effective date and each year thereafter, until sales of a licensed product are made and royalties are paid to the UC Regents.

In addition, the Company is obligated to make certain contingent payments including (i) development milestones up to $3.1million, (ii) low single digit royalties on the net sales of its developed products that consist of a minimum annual royalty of up to $0.1million per year for the term of the agreement beginning in the first calendar year after the year in which net sales first occurred, and (iii) sublicense consideration in the mid-teens to the mid-twenties-range on any future sublicensing arrangements the Company may enter into with third-party licensees.

Regents of the University of California and The Trustees of the University of Pennsylvania

In July 2021, the Company entered into an exclusive license agreement with the UC Regents and the Trustees of the University Pennsylvania to license intellectual property related to certain vectors. In July 2021, the Company paid a non-refundable license fee of $100,000to the UC Regents upon execution of the agreement. The Company is obligated to pay a non-refundable license maintenance fee of $10,000on the one-year anniversary of the contract effective date and each year thereafter, except years for which the Company has paid royalties on the net sales of a licensed product. In addition, the Company is obligated to make certain contingent payments including (i) development milestones up to $3.9million, (ii) low single digit percentage rate royalties on the net sales of its licensed products that consists of a minimum annual royalty of up to $0.1million per year for the term of the agreement beginning in the first calendar year after the year in which net sales first occurred and (iii) sublicense consideration in the mid-single digits to the low twenties percentage rate range on any future sublicensing arrangements the Company may enter into with third-party licensees. On February 22, 2023, the Company provided 90 days written notice to the UC Regents and the Trustees of the University Pennsylvania to terminate said agreement in its entirety at-will. Accordingly, the effective termination date of this agreement is May 23, 2023.

The Company did not incur any expense under the provisions of the outstanding license agreements during each of the three and nine months ended September 30, 2024 and 2023.

9. Commitments and Contingencies

The Company's lease obligations relate primarily to leased office, laboratory and warehouse facilities under noncancelable operating leases.

Operating Lease Commitments

5980 Horton Street Building Lease

In May 2015, the Company executed a lease agreement (the "5980 Horton Lease") for office and laboratory space in Emeryville, California. The 5980 Horton Lease, as amended, expires in August 2026.

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As of September 30, 2024, the right-of-use asset and lease liability related to the 5980 Horton Lease were $0.9million and $1.1million, respectively. As of December 31, 2023, the right-of-use asset and lease liability related to the 5980 Horton Lease were $1.2million and $1.4million, respectively.

5858 Horton Street Lease and Expansion

In October 2018, the Company executed a lease agreement (the "5858 Horton Lease") for office and laboratory facilities in Emeryville, California. The 5858 Horton Lease, as amended in 2019, 2021 and 2022, consists of approximately 40,802square feet of space and has a lease term through December 31, 2029. In July 2024, the Company extended the term of the 5858 Horton Lease for a period of twelve monthsto December 31, 2030. In accordance with ASC Topic 842, Leases, the Company accounted for the extension as a modification and remeasured the lease liability based on the new lease term and an updated, estimated incremental borrowing rate of 10.75%. The modification resulted in an increase to the lease liability of $0.8million and a corresponding increase to the carrying value of the right-of-use asset. Nogain or loss was recognized upon the modification. As of September 30, 2024, the right-of-use asset and lease liability related to the 5858 Horton Lease was $10.2million and $12.9million, respectively. As of December 31, 2023, the right-of-use asset and lease liability related to the 5858 Horton Lease were $10.3million and $13.2million, respectively.

In July 2024, the Company also entered into a lease agreement for additional office and laboratory space in Emeryville, California (the "5858 Horton Expansion Lease"). The 5858 Horton Expansion Lease consists of approximately 32,038square feet of space and commenced on September 1, 2024and has a lease term through December 31, 2030. As of September30, 2024, the right-of-use asset and lease liability related to the 5858 Horton Expansion Lease were $9.2million and $9.4million, respectively. The discount rate used to measure the lease liability was 11.02%.

Emeryville Warehouse Lease

In January 2024, the Company entered into a lease agreement for warehouse space in Emeryville, California (the "Warehouse Lease"). The Warehouse Lease commenced on August 1, 2024. The Warehouse Lease consists of approximately 7,800square feet of warehouse space and has a lease term through December 31, 2029. As of September 30, 2024, the right-of-use asset and lease liability related to the Warehouse Lease were each $1.5million.The discount rate used to measure the lease liability related to the Warehouse Lease was 10.69%.