AN2 Therapeutics, Inc. Leases Disclosure
Note 6. Leases
In May 2021, the Company entered into an operating lease agreement for its principal office in Menlo Park, California. In September 2021, the lease was amended to extend the term to expire in August 2022. In July 2022, the lease was amended to exercise a renewal option and extend the term to expire in August 2023. In July 2023, the lease was further amended to exercise a renewal option and extend the term to expire in August 2024. At the time of amendment, the Company determined that this lease meets the criteria for a short-term lease. Under the lease agreement, the Company has one additional 12-month renewal option through August 2025.
The Company has not entered into any finance lease agreements as of December 31, 2023.
The following table summarizes total lease expense during the year ended December 31, 2023 (in thousands):
|
|
Statements of Operations and Comprehensive Loss Classification |
|
Year Ended December 31, 2023 |
|
|
Operating lease expense |
|
Operating expenses |
|
$ |
54 |
|
Short-term lease expense |
|
Operating expenses |
|
|
107 |
|
Total lease expense |
|
|
|
$ |
161 |
|
The Company paid $50 thousand and $80 thousand in operating cash flows from operating leases for amounts included in the measurement of liabilities during the years ended December 31, 2023 and 2022, respectively.
As of December 31, 2023, all leases were determined to be short-term leases. As of December 31, 2022, the weighted-average remaining lease term and discount rate for operating leases was 0.67 years and 5.1%, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 29, 2024 | Showing above |
| 2022 | Mar 29, 2023 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.