CDT Equity Inc. Leases Disclosure
7. Leases
During the year ended December 31, 2024, the Company entered into an operating lease for laboratory space. The remaining lease terms for the operating lease is approximately one year and does not provide a renewal option. The Company has elected the short-term lease policy election, which allows the Company to exclude from recognition leases with an original term of 12 months or less.
Upon commencement of the laboratory lease on March 7, 2024, the Company recorded a right-of-use asset of $0.4 million, short-term lease liability of $0.2 million, and long-term lease liability of $0.2 million.
Lease costs associated with the Company’s operating and short-term leases are recorded within general and administrative expense in the consolidated statement of operations and comprehensive loss. The following table sets forth information about our lease costs for the year ended December 31, 2025 and 2024 (in thousands):
| Lease Cost | December 31, 2025 | December 31, 2024 |
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| Operating lease cost | $ | 142 | $ | 116 |
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| Short-term lease cost | 128 | 128 |
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| Variable lease cost | 15 | 15 |
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| Total lease cost | $ | 285 | $ | 259 |
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The following table sets forth information about our operating lease for the year ended December 31, 2025 and 2024 (in thousands):
| Supplemental cash flow and other information | December 31, 2025 | December 31, 2024 |
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| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 125 | $ | 143 |
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ROU assets obtained in exchange for lease liabilities | 352 |
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| Weighted-average remaining lease term (in years) | 1.0 | 2.0 |
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| Weighted-average discount rate | 11.2 | % | 11.2 |
% | ||||
The Company’s future minimum lease payments for our operating lease as of December 31, 2025 are as follows (in thousands):
December 31, 2025 | ||||
| Year ending December 31, | ||||
| 2026 | $ | 122 | ||
| Total | 122 | |||
| Less: imputed interest | (7 | ) | ||
| Total lease liability | $ | 115 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
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.