Note 7. Leases

 

We lease laboratory and office space and certain laboratory equipment under non-cancellable operating leases. The carrying value of our right-of-use lease assets is substantially concentrated in our real estate leases, while the volume of lease agreements is primarily concentrated in equipment leases. We expect that, in the normal course of business, the existing leases will be renewed or replaced by similar leases.

 

We have leases for three real estate properties: (i) a laboratory and manufacturing facility lease that commenced in September 2021 with a ten-year term and an option to extend for two five-year periods, (ii) a laboratory and manufacturing facility lease that commenced in February 2022 with a seven-year term and an option to extend for two five-year periods, and (iii) our corporate office lease that commenced in April 2020 for seven years with an option to extend for five years. We did not recognize the payments to be made in the option periods as part of the right-of-use asset or lease liability because the exercise of the option is not reasonably certain.

 

As of December 31, 2025 and 2024, our operating lease obligations had a weighted-average discount rate of 9.6% and 9.6%, respectively, and a weighted-average remaining term of 4.6 years and 5.5 years, respectively.

 

Maturity Analysis of Lease Obligations

 

The maturity analysis of our operating lease obligations as of December 31, 2025 was as follows:

 

(in thousands)

 

Operating Leases

 

2026

 $1,161 

2027

  1,133 

2028

  1,093 

2029

  649 

2030

  623 

Thereafter

  422 

Total minimum lease payments

  5,081 

Less amount representing interest/discounting

  (1,023)

Present value of minimum lease payments

  4,058 

Less lease obligations, current portion

  (808)

Lease obligations, net of current portion

 $3,250 

 

Components of Lease Cost

 

The components of lease costs for the years ended December 31, 2025 and 2024 were as follows:

 

  Year Ended December 31, 

(in thousands)

 

2025

  

2024

 

Finance lease amortization

 $  $69 

Operating lease costs

  1,018   1,019 

Short-term lease costs

  2   2 

Variable lease costs

  318   231 

Total lease costs

 $1,338  $1,321 

 

Supplemental Cash Flow Information

 

  Year Ended December 31, 

(in thousands)

 

2025

  

2024

 

Operating cash flows from operating leases

 $(1,338) $(1,252)

Financing cash flows from finance leases

 $  $(27)

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2023Mar 13, 2024
2022Mar 13, 2023
2021Mar 11, 2022
2020Mar 29, 2021

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.