Esperion Therapeutics, Inc.ESPR

Esperion Therapeutics, Inc. Leases Disclosure

10-KFiled Mar 7, 20252 min read
Leases
The Company has operating leases primarily related to the Company's principal executive office, automobile leases and other IT related equipment. The lease for the principal executive office has a lease term of 5 years from November 1, 2023, and the automobile leases and IT equipment leases primarily have a term of 3 years. During the years ended December 31, 2024, December 31, 2023 and December 31, 2022 the Company recognized $3.0 million, $1.0 million and $1.3 million, respectively, of operating lease costs, recognized on the statements of operations and comprehensive loss, and paid cash for the amounts included in the measurement of lease liabilities of $2.6 million, $1.0 million and $1.2 million, respectively, which were included in operating cash flows on the statements of cash flows. At December 31, 2024 and December 31, 2023, the weighted-average remaining lease term of operating leases was 2.1 years and 2.9 years, respectively, and the weighted average discount
rate was 7.4% and 7.5%, respectively. There was $3.3 million and $4.5 million in right-of-use assets obtained in exchange for lease obligations for the twelve months ended December 31, 2024 and December 31, 2023, respectively. The Company had no additional operating and finance leases that had not yet commenced as of December 31, 2024.
The following table summarizes the Company's future maturities of operating lease liabilities as of December 31, 2024:
(in thousands)
2025$3,061 
20262,307 
2027241 
2028144 
2029— 
Total lease payments5,753 
Less imputed interest(442)
Total$5,311 
The following table summarizes supplemental balance sheet information related to leases as of December 31, 2024:
Operating Leases(in thousands)
Total right of use operating lease assets$5,513 
Operating lease liabilities (short-term)(2,741)
Operating lease liabilities (long-term)(2,570)
Total lease obligations under operating leases$(5,311)

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.

Other Available Disclosures

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