CRISPR Therapeutics AG Leases Disclosure
7. Leases
In May 2020, the Company entered into a lease agreement for a cell therapy manufacturing facility in Framingham, Massachusetts, or the Framingham Lease, for clinical and commercial production of the Company’s investigational cell therapy product candidates. The Framingham Lease expires in March 2036 and the Company has an option to extend the term of the lease for two additional seven-year periods. The right-of-use asset and corresponding lease liability does not include the additional seven-year periods under the renewal option as the Company is not reasonably certain to exercise that option.
In July 2020, the Company entered into a lease agreement for an office and laboratory facility in Boston, Massachusetts, with a commencement date of June 1, 2021, or the 2020 Lease. At lease commencement, the Company recorded a right-of-use asset of $149.8 million and a corresponding operating lease liability of $147.9 million. Tenant incentives of $49.2 million were recorded as a reduction to the operating lease asset and liability at lease commencement. The lease expires in March 2034 and the Company has an option to extend the term of the lease for two additional five-year periods. The right-of-use asset and corresponding lease liability does not include the additional five-year periods under the renewal option as the Company is not reasonably certain to exercise that option.
The Company also rents certain office space in Zug, Switzerland, on a short-term basis for which a right-of-use asset and liability are not recorded, in accordance with the practical expedient elected.
The Company has embedded leases in certain research and license agreements for which the Company has recorded a right of use asset and liability. These arrangements are not significant in comparison to the Company’s total operating lease assets and liabilities.
The Company identified and assessed the following estimates in recognizing the right-of-use asset and corresponding liability:
The following table summarizes the lease assets and liabilities as of December 31, 2025 and 2024 (in thousands):
|
|
As of December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Assets |
|
|
|
|
|
|
||
Operating lease assets |
|
$ |
131,724 |
|
|
$ |
143,461 |
|
Total lease assets |
|
|
131,724 |
|
|
|
143,461 |
|
Liabilities |
|
|
|
|
|
|
||
Current |
|
|
|
|
|
|
||
Operating lease liabilities |
|
|
18,578 |
|
|
|
17,288 |
|
Non-current |
|
|
|
|
|
|
||
Operating lease liabilities, net of current portion |
|
|
188,168 |
|
|
|
206,405 |
|
Total lease liabilities |
|
$ |
206,746 |
|
|
$ |
223,693 |
|
The following table summarizes operating lease costs included in research and development and general and administrative expense, as well as sublease income for the years ended December 31, 2025, 2024 and 2023 (in thousands):
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease costs |
|
$ |
23,843 |
|
|
$ |
24,417 |
|
|
$ |
25,870 |
|
Short-term lease costs |
|
|
46 |
|
|
|
40 |
|
|
|
— |
|
Variable lease costs |
|
|
13,500 |
|
|
|
12,364 |
|
|
|
14,387 |
|
Sublease income |
|
|
(930 |
) |
|
|
(573 |
) |
|
|
(137 |
) |
Net lease cost |
|
$ |
36,459 |
|
|
$ |
36,248 |
|
|
$ |
40,120 |
|
The following table summarizes the maturity of undiscounted payments due under lease liabilities and the present value of those liabilities as of December 31, 2025 (in thousands):
|
|
Total |
|
|
2026 |
|
|
29,684 |
|
2027 |
|
|
28,798 |
|
2028 |
|
|
28,206 |
|
2029 |
|
|
27,314 |
|
2030 |
|
|
28,035 |
|
Thereafter |
|
|
123,535 |
|
Total |
|
$ |
265,572 |
|
Present value adjustment |
|
|
(58,826 |
) |
Present value of lease liabilities |
|
$ |
206,746 |
|
The following table summarizes the lease term (in years) and discount rate for operating leases as of December 31, 2025 and 2024:
|
|
As of December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term |
|
|
8.9 |
|
|
|
9.8 |
|
Weighted-average discount rate |
|
|
5.9 |
% |
|
|
5.9 |
% |
The following table summarizes the cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2025, 2024 and 2023 (in thousands):
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for amounts included in measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|||
Operating cash flows used in operating leases |
|
$ |
(29,217 |
) |
|
$ |
(28,949 |
) |
|
$ |
(27,310 |
) |
Operating lease non-cash items: |
|
|
|
|
|
|
|
|
|
|||
Right-of-use assets increased through lease modifications and reassessments |
|
|
375 |
|
|
|
525 |
|
|
|
2,660 |
|
Right-of-use assets obtained in exchange for operating lease liabilities |
|
|
— |
|
|
|
243 |
|
|
|
7,552 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 12, 2020 | |
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.