ArriVent BioPharma, Inc. Commitments Disclosure
(7) | Commitments and Contingencies |
Leases
The Company has two operating leases that it subleases for its office space in California, one of which commenced in January 2024 with an original lease term through January 2026 (which ended in January 2026). The Company’s other lease has an initial lease term of less than twelve months; therefore, it does not recognize this lease as an operating lease on the balance sheet.
Operating lease expense was $0.2 million for each of the years ended December 31, 2025 and 2024. The Company’s remaining lease term and discount rate for its operating lease as of December 31, 2025 are 0.08 years and 10.0%, respectively.
Future maturities of operating lease liabilities were as follows as of December 31, 2025 (in thousands):
Fiscal year ending: | | ||
2026 | $ | 14 | |
2027 | — | ||
Total future minimum payments |
| 14 | |
Less imputed interest | — | ||
Present value of lease liabilities | $ | 14 |
Cash paid for rent expense recorded during the years ended December 31, 2025 and 2024 was $0.2 million and $0.2 million, respectively.
Purchase Commitments
The Company enters into contracts in the normal course of business with contract research organizations, contract manufacturing organizations, universities, and other third parties for preclinical research studies, clinical trials and testing and manufacturing services. These contracts generally do not contain minimum purchase commitments and are cancellable by the Company upon prior written notice although, purchase orders for clinical materials are generally non-cancellable. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of the Company’s service providers, up to the date of cancellation or upon completion of a manufacturing run.
Employee Benefit Plan
The Company maintains a 401(k) plan for employees. The 401(k) plan qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) plan, participating employees may defer a portion of their pre-tax earnings. The Company contributes 100% of employee salary deferral contributions up to 4% of pay for
each payroll period. The Company contributions to the 401(k) plan during the years ended December 31, 2025 and 2024, were $0.7 million and $0.5 million, respectively.
Contingencies
Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.