Apellis Pharmaceuticals, Inc. Leases Disclosure
8. Leases
The underlying assets of the Company’s leases primarily relate to office space leases and certain equipment leases. The Company determines if an arrangement qualifies as a lease at its inception.
As of December 31, 2025 and 2024, all leases were classified as operating leases. Additional information related to the operating leases is as follows (in thousands):
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Right-of-use assets |
|
$ |
18,195 |
|
|
$ |
16,083 |
|
Operating lease liabilities |
|
$ |
19,034 |
|
|
$ |
16,954 |
|
Weighted average remaining term in years |
|
|
3.31 |
|
|
|
2.73 |
|
Weighted average discount rate used to measure |
|
|
6.52 |
% |
|
|
6.20 |
% |
For the years ended December 31, 2025, 2024, and 2023, the total lease cost for operating leases was approximately $10.5 million, $10.2 million, and $7.0 million, respectively.
Supplemental cash flow information related to operating leases for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating cash flows from operating leases |
|
$ |
10,471 |
|
|
$ |
9,263 |
|
|
$ |
7,939 |
|
Operating lease assets obtained in exchange for lease obligations |
|
$ |
6,457 |
|
|
$ |
— |
|
|
$ |
2,700 |
|
The maturity of the Company’s operating lease liabilities as of December 31, 2025 are as follows (in thousands):
2026 |
|
|
$ |
|
7,940 |
|
2027 |
|
|
|
|
5,808 |
|
2028 |
|
|
|
|
3,581 |
|
2029 |
|
|
|
|
3,324 |
|
2030 and thereafter |
|
|
|
|
373 |
|
Total future minimum lease payments |
|
|
|
|
21,026 |
|
Less imputed interest |
|
|
|
|
(1,992 |
) |
Total operating lease liabilities |
|
|
$ |
|
19,034 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
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.