BioCardia, Inc. Leases Disclosure

(5)	Operating Lease Right-of-Use Assets, Net

 

We determine if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our operating lease relates to a property lease for its laboratory and corporate offices which expires in January 2027. Provided that we are not in default under any provision of the lease at the time of exercise of the extension right, and provided further we are occupying the entire premises and have not assigned or sublet any of our interest in this lease, we may extend the term of this lease for one period of 36 months. BioCardia’s lease agreement does not contain any material residual guarantees or material restrictive covenants.

 

ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Our lease does not provide an implicit rate. We used an adjusted historical incremental borrowing rate, based on the information available at the approximate lease commencement date, to determine the present value of lease payments. Variable rent expense is made up of expenses for common area maintenance and shared utilities and were not included in the determination of the present value of lease payments. We have no finance leases.

 

The components of lease expense for the years ended December 31, 2025 and 2024 were as follows (in thousands, except years and percentages):

 

		2025				2024
Straight-line rent expense recognized for operating lease		$	482			$	482
Variable rent expense recognized for operating lease			96				91
Total rent expense		$	578			$	573
Weighted average remaining lease term (in years)			1.1				2.1
Weighted average discount rate			10.74	%			10.74	%

 

 

Supplemental cash flow information related to the operating lease for the years ended December 31, 2025 and 2024 was as follows (in thousands):

 

		2025				2024
Cash paid for amounts included in the measurement of lease liabilities		$	423			$	364
Cash lease expense (imputed interest expense component of net loss)			77				119
Total rent expense		$	500			$	483

 

 

Future minimum lease payments under the operating lease as of December 31, 2025 are as follows (in thousands):

 

2026		$	514
2027			44
Total undiscounted lease payments		$	558
Less imputed interest			30
Total operating lease liabilities		$	528