Climb Bio, Inc. Leases Disclosure
Note 7. Leases
The Company leases office space under a non-cancelable operating lease in Wellesley, Massachusetts under a 24-month lease agreement that expires in . The lease contains rent escalation clauses and an option to extend the term of the lease for an additional 12-month period at a market rate determined according to the lease. At the lease’s inception and as of December 31, 2025, the Company expects to exercise its option to extend the lease, and therefore the period covered by this option is included in the lease term.
In April 2025, the Company amended the lease to add space to the existing lease for additional fixed payments totaling $0.2 million through 2026 with an option to extend the lease through 2027 for additional fixed payments of $0.1 million. As the Company expects to exercise its option to extend the lease, the extension period is included in the lease term. Accordingly, the Company recorded an increase to operating lease right-of-use assets and operating lease liabilities of $0.2 million.
The Company previously leased office space in Bellevue, Washington, which expired in January 2025, and Cambridge, U.K., which expired in June 2024.
The components of lease expense were as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Operating lease cost |
|
$ |
250 |
|
|
$ |
243 |
|
Short-term lease cost |
|
|
— |
|
|
|
— |
|
Variable lease cost |
|
|
9 |
|
|
|
86 |
|
|
|
$ |
259 |
|
|
$ |
329 |
|
Supplemental disclosure of cash flow information related to leases was as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of operating |
|
$ |
256 |
|
|
$ |
350 |
|
Operating lease liabilities arising from obtaining right-of-use |
|
$ |
216 |
|
|
$ |
510 |
|
The weighted-average remaining lease term and discount rate were as follows:
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term - operating lease (in years) |
|
|
2.0 |
|
|
2.9 |
|
|
Weighted-average discount rate - operating lease |
|
|
8.5 |
% |
|
|
8.5 |
% |
As of December 31, 2025, the annual future minimum lease payments due under the Company’s non-cancelable operating lease was as follows (in thousands):
Year ending December 31, |
|
|
|
|
2026 |
|
$ |
293 |
|
2027 |
|
|
298 |
|
Total undiscounted lease payments |
|
|
591 |
|
Less: imputed interest |
|
|
(50 |
) |
Total operating lease liabilities |
|
$ |
541 |
|
Total operating lease liabilities in the table above are classified on the consolidated balance sheet as follows (in thousands):
Included in the consolidated balance sheet (in thousands): |
|
|
|
|
Current operating lease liability |
|
$ |
256 |
|
Operating lease liability, net of current portion |
|
|
285 |
|
Total operating lease liabilities |
|
$ |
541 |
|
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.