BridgeBio Oncology Therapeutics, Inc. Leases Disclosure
9. Leases
In November 2024, the Company entered into an agreement for the lease of approximately 10,934 square feet of office space in South San Francisco, California, for 61 months. The Company has the option to renew for an additional four-year term. The renewal option was not reasonably certain to be exercised by the Company and was excluded from the lease term. The lease commenced in March 2025 and will expire in April 2030. The associated lease costs were not material during the year ended December 31, 2025. As of December 31, 2025, the weighted-average remaining lease term for the Company’s lease was 4.3 years, and the discount rate used was 7.40%.
The following table presents the amortization of the Company’s lease liabilities (in thousands):
Fiscal year ended December 31: |
|
|
|
|
2026 |
|
|
705 |
|
2027 |
|
|
730 |
|
2028 |
|
|
755 |
|
2029 |
|
|
782 |
|
2030 |
|
|
263 |
|
Total lease payments |
|
$ |
3,235 |
|
Less: imputed interest |
|
|
(469 |
) |
Total operating lease liabilities |
|
$ |
2,766 |
|
Short-term lease costs were $1.1 million and $1.5 million for the years ended December 31, 2025 and 2024, respectively.
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.