Corvus Pharmaceuticals, Inc. Leases Disclosure
14. Facility Leases
On October 22, 2024, the Company entered into an operating sub-sublease agreement, pursuant to which the Company sub-leased approximately 20,916 square feet of office and lab space. The sub-sublease has a term of three years commencing on February 21, 2025 with an option to extend at fair market value for an additional 27 months. The Company records rent expense on a straight-line basis over the effective term of the lease, including any free rent periods and incentives. As the interest rate implicit in lease arrangements is typically not readily available, in calculating the present value of the lease payments, the Company has utilized its incremental borrowing rate, which is determined based on the prevailing market rates for collateralized debt with maturity dates commensurate with the term of its lease.
The Company’s obligation for the payment of base rent for the premises begins on the commencement date and will initially be $33,833 per month, up to monthly base rent of $47,200 during the third year of the sub-sublease. In addition to base rent, the Company is obligated to pay its proportionate share of taxes, insurance and operating expenses. In November 2024, the Company paid the sublandlord $231,235 in prepaid rent, which was applied to the monthly base rent and the Company’s proportionate share of additional expenses for the first three months of the term of the sub-sublease.
Although the non-cancellable lease term commenced on February 21, 2025, for purposes of determining the right-of-use asset balance, in accordance with ASC Topic 842, the Company used November 25, 2024 as the commencement date, the date on which the sublandlord granted the Company access to the premises. The sub-sublease is a net lease, as the non-lease components (i.e., common area maintenance) are paid separately from rent based on actual costs incurred. Therefore, the non-lease components were not included in the right-of-use asset and liability and are reflected as an expense in the period incurred.
As of December 31, 2025 and 2024, the right-of-use asset under the operating lease was $0.8 million and $1.2 million, respectively. The elements of lease expense under the operating lease were as follows (in thousands):
Year Ended |
| ||||||||
| Statements of operations and | | December 31, |
| |||||
comprehensive loss location | 2025 | | 2024 | ||||||
Costs of operating lease | |||||||||
Operating lease costs | Research and development, | $ | 458 | $ | 46 | ||||
Costs of non-lease components (previously common area maintenance) | Research and development, | 162 | — | ||||||
Total operating lease cost | $ | 620 | $ | 46 | |||||
Other Information |
| ||||||||
Operating cash flows used for operating lease | $ | 280 | $ | 153 | |||||
Remaining lease term |
| 2.1 years |
| 3 years | |||||
Discount rate |
| 11.7% |
| 11.7% | |||||
As of December 31, 2025, minimum rental commitments under this lease were as follows (in thousands):
Year Ended December 31 (in thousands) | | ||
2026 |
| $ | 486 |
2027 | 566 | ||
Total lease payments |
| 1,052 | |
Less: imputed interest | (115) | ||
Total |
| $ | 937 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2023 | Mar 19, 2024 | |
| 2022 | Mar 28, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 9, 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.