CURIS INCCRIS

CURIS INC Leases Disclosure

10-KFiled Mar 24, 20263 min read
Leases and Commitments
(a)Operating Leases
The Company has a single lease for real estate, including laboratory and office space, and certain equipment, located at 128 Spring Street in Lexington, Massachusetts which commenced on May 1, 2020.
A portion of the Company’s leased space was subject to an early termination option that became effective on the lease commencement date of a new lease for larger premises within the landlord’s commercial real estate portfolio. The landlord had the option to early terminate the lease agreement by providing written notice to the Company eighteen months prior to December 31, 2025, or by June 30, 2024. The Company previously expected the lease to end as of December 31, 2025, and the Company no longer expects the lease to end early, which was accounted for as a lease modification that occurred during the year ended December 31, 2024. During the year ended December 31, 2024, the Company recognized an increase of $1.4 million to the lease liability and right-of-use asset as a result of the lease modification. The lease will expire on April 30, 2027.
The discount rate associated with the Company’s right-of-use asset is 10%. The total cash obligation for the base rent over the seven-year term of this lease is approximately $10.5 million, of which $1.6 million was paid during the year ended December 31, 2025.
The Company's lease is an operating lease. The following table summarizes the presentation in the Company's Consolidated Balance Sheet for the operating lease:
December 31,
(in thousands)
20252024
Assets:
Operating lease right-of-use asset$1,890 $3,163 
Liabilities:
Operating lease liability - short-term$1,190 $1,336 
Operating lease liability - long-term428 1,618 
Total operating liability$1,618 $2,954 
The following table summarizes the effect of lease costs in the Company's Consolidated Statements of Operations and Comprehensive Loss:
For the Year Ended December 31,
(in thousands)
20252024
Operating lease cost
Research and development$743 $844 
General and administrative752 722 
Total$1,495 $1,566 
The Company’s lease payments through the end of the expected lease term are expected to be as follows:
Year Ending December 31,(in thousands)
2026$1,287 
2027433 
Total lease payments$1,720 
Less: interest102 
Present value of operating lease liabilities$1,618 
(b)License and Funding Agreements
In exchange for the right to use licensed technology in its research and development efforts, the Company has entered into various license agreements and funding agreements. These license agreements generally stipulate that the Company is obligated to pay royalties on future revenues, if any, resulting from use of the underlying licensed technology. Such revenues may include up-front license fees, contingent payments upon collaborators’ achievement of development and regulatory objectives, and royalties. In addition, some of the agreements commit the Company to make contractually defined payments upon the attainment of scientific or clinical milestones. The Company expenses these payments as they are incurred and expenses royalty payments as related future product sales or as royalty revenues are recorded. The Company accrues expenses for scientific and clinical objectives over the period that the work required to meet the respective objective is completed, provided that the Company believes that the achievement of such objective is probable.

Historical Timeline

Fiscal YearFiled
2025Mar 24, 2026Showing above
2024Mar 31, 2025
2023Feb 8, 2024
2022Mar 13, 2023
2021Feb 24, 2022
2020Mar 16, 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.

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