Aptevo Therapeutics Inc. Leases Disclosure
Note 6. Leases and Contingencies
Office Space Lease – Operating
We have an operating lease related to our office and laboratory space in Seattle, Washington. This lease was amended in March 2019 to extend the term through April 2030 and provide two options to extend the lease term, each by five years, as well as a one-time option to terminate the lease in April 2023, with nine months’ notice. We had previously determined at lease inception and as of the May 26, 2022, amendment date that we should not include any periods after the termination option when evaluating this amendment as we were not reasonably certain to not exercise the option, therefore we recorded our liability through April 30, 2023.
As of December 31, 2025, we are not reasonably certain to exercise the two options to extend the lease term. Therefore, pursuant to our May 26, 2022 amendment, we recorded our lease liability through April 30, 2030.
For the years ended December 31, 2025 and 2024, we recorded $0.9 million for both years related to variable expenses due to true ups of operating costs or real estate taxes.
Equipment Leases - Operating and Financing
As of December 31, 2025, we did not have any operating or financing leases for equipment. We recorded $1.2 million in operating lease cost for the years ended December 31, 2025 and 2024.
Components of lease expense:
Right-of-use assets acquired under operating leases:
|
|
As of December 31, |
|
|
As of December 31, |
|
||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Seattle office lease, including amendment |
|
$ |
3,810 |
|
|
$ |
4,389 |
|
Total operating leases |
|
$ |
3,810 |
|
|
$ |
4,389 |
|
Lease payments:
|
|
For the Year Ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
For operating leases |
|
$ |
1,376 |
|
|
$ |
1,376 |
|
Future minimum payments as of December 31, 2025 are as follows:
(in thousands) |
|
|
|
|
2026 |
|
$ |
1,376 |
|
2027 |
|
|
1,376 |
|
2028 |
|
|
1,376 |
|
2029 and beyond |
|
|
1,835 |
|
Total Future minimum lease payments |
|
|
5,963 |
|
Less: imputed interest |
|
|
(1,334 |
) |
Total |
|
$ |
4,629 |
|
As of December 31, 2025, the and were $3.8 million and $0.9 million, respectively. As of December 31, 2024, the and were $4.6 million and $0.8 million, respectively.
As of December 31, 2025, the weighted-average remaining lease term and weighted discount rate for operating leases was 4.3 years and 12.03%, respectively. As of December 31, 2024, the weighted-average remaining lease term and weighted discount rate for operating leases was 5.3 years and 12.03%, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 24, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2016 | Mar 31, 2017 | |
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.