ARDELYX, INC.ARDX

ARDELYX, INC. Leases Disclosure

10-KFiled Feb 19, 20262 min read
LEASES
Our lease obligation is comprised of operating leases for our offices with remaining lease terms ranging from approximately two years to four years and each containing customary rent escalation clauses. Each of our leases contains one renewal, at our option, for a five-year period. We have not included these renewal periods in the calculation of the right-of-use assets and lease liabilities since it is uncertain whether we will exercise the renewal options.
The following table provides additional details of our facility leases presented in our balance sheets:
($ in thousands)
December 31,
Facilities20252024
Right-of-use assets$4,795 $2,380 
Current portion of lease liabilities$1,479 $1,562 
Operating lease liability, net of current portion3,641 1,023 
Total lease liabilities$5,120 $2,585 
Weighted-average remaining term (in years)3.11.8
Weighted-average discount rate5.6 %6.5 %
The lease costs, which are included in our statements of operations and comprehensive loss, and the supplemental cash flow information related to the leases were as follows:
Year Ended December 31,
(in thousands)202520242023
Operating lease expense$2,211 $4,699 $3,857 
Cash paid for operating leases$2,093 $4,931 $4,481 
The following table summarizes our undiscounted cash payment obligations for our operating lease liabilities as of December 31, 2025:
(in thousands)
Operating Leases
2026$1,784 
20271,836 
20281,402 
2029575 
Thereafter— 
Total undiscounted operating lease payments5,597 
Imputed interest expenses(477)
Total operating lease liabilities5,120 
Less: Current portion of operating lease liability(1,479)
Operating lease liability, net of current portion$3,641 

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.

Other Available Disclosures

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