enGene Therapeutics Inc. Leases Disclosure
13. Leases
The Company’s leases are comprised of all operating leases for office and lab space.
On December 29, 2022, the Company signed a new lease for approximately 10,620 square feet of new laboratory and office space at 4868 Rue Levy, Montreal, QC. The term of the lease is for 10 years, beginning on the commencement date, and requires an annual initial base rent of $36.50 CAD per square foot, which is subject to annual increases of 2%. The lease commenced in November 2023. Upon commencement the Company recognized an initial lease liability and corresponding right of use asset of $1.4 million.
On January 1, 2024, enGene USA entered into a lease agreement, in which the Company is sub-leasing approximately 6,450 square feet of office space located at 200 Fifth Avenue, Waltham, MA. The Company will make an aggregate amount of base rental payments of $0.5 million under the initial term of the lease, which is set to expire on December 30, 2026 and does not have an option to renew. Upon commencement, the Company recognized an initial lease liability and corresponding right of use asset of $0.4 million.
On June 4, 2025, enGene USA, Inc entered into a lease agreement, pursuant to which the Company agreed to lease approximately 26,335 square feet of office space located at 99 High Street, Boston, Massachusetts. The Company is expected to make an aggregate amount of base rental payments of $10.6 million, under the initial term of the lease, which is set to expire in November 2030. In connection with the lease, enGene Holdings Inc. has delivered a guaranty, dated June 4, 2025, pursuant to which the Company guaranteed enGene USA's payment and performance. The lease commenced in June 2025 and upon commencement, the Company recognized an initial lease liability of $6.4 million and corresponding right of use asset of $6.5 million.
During the year ended October 31, 2025 and 2024, the components of operating lease cost were as follows, and are reflected in general and administrative expenses and research and development expenses, as determined by the underlying activities:
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Year Ended October 31, |
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2025 |
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2024 |
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Lease Cost: |
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Operating lease cost |
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$ |
1,266 |
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$ |
444 |
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Variable operating lease cost |
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— |
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|
|
24 |
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Total operating lease cost |
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$ |
1,266 |
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$ |
468 |
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The following table summarizes the cash paid for amounts included in the measurement of the Company’s operating lease liabilities for the year ended October 31, 2025, and 2024:
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Year Ended October 31, |
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2025 |
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2024 |
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Cash paid for amounts included in the measurement |
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$ |
620 |
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$ |
365 |
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Maturities of the Company's operating lease liabilities as of October 31, 2025 are as follows:
2026 |
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$ |
2,191 |
|
2027 |
|
|
2,391 |
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2028 |
|
|
2,409 |
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2029 |
|
|
2,457 |
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2030 |
|
|
2,502 |
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Thereafter |
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|
1,081 |
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Total |
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|
13,031 |
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Less: Interest |
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|
(4,562 |
) |
Total lease liability |
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$ |
8,469 |
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As of October 31, 2025, the Company had operating lease liabilities of $8.5 million recorded on the balance sheet. As of October 31, 2024, the Company had operating lease liabilities of $1.8 million recorded on the balance sheet.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 22, 2025 | Showing above |
| 2024 | Dec 19, 2024 | |
| 2023 | Jan 29, 2024 | |
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.