GERON CORPGERN

GERON CORP Leases Disclosure

10-KFiled Mar 2, 20263 min read
OPERATING LEASES
New Jersey Office Space Lease
In April 2019, we entered into an operating lease agreement for office space located at 3 Sylvan Way,
Parsippany, New Jersey, or the New Jersey Lease. The initial term of the New Jersey Lease is 11 years with an option to
extend for an additional five years and a one-time option to terminate the New Jersey Lease without cause as of the 103rd
month anniversary of the commencement date of the lease. The New Jersey Lease commenced on October 1, 2019, upon
our control of the office space on that date. Based on the initial term of the New Jersey Lease of 11 years, the right-of-use
asset and corresponding operating lease liability was approximately $2.4 million, which represented the present value of
lease payments over the initial lease term, net of a seven-month rent abatement period, using an incremental borrowing rate
of 8% based on information available as of October 1, 2019. As of December 31, 2025, the New Jersey Lease makes up
$1.3 million of our total right-of-use asset balance. Under the New Jersey Lease, we are also obligated to pay certain
variable expenses separately from the base rent, including electricity and common area maintenance. Such costs are being
expensed in the period they are incurred.
California Office Space Lease
In October 2019, we entered into an operating lease agreement for office space located at 919 East
Hillsdale Boulevard, Foster City, California, or the Foster City Lease. The initial term of the Foster City Lease is 87
months with an option to extend for an additional five years.
The Foster City Lease commenced on March 10, 2020, upon the substantial completion of all tenant
improvements. As of the lease commencement date, the right-of-use asset and corresponding operating lease liability was
approximately $3.4 million, which represented the present value of remaining lease payments using an incremental
borrowing rate of 7% over the initial lease term of 87 months, net of a three-month rent abatement period. As of
December 31, 2025, the Foster City Lease makes up $0.9 million of our total right-of-use asset balance. Under the Foster
City Lease, we are also obligated to pay certain variable expenses separately from the base rent, including taxes and
common area maintenance. Such costs are considered non-lease components and have been excluded from the calculation
of the right-of-use asset and corresponding operating lease liability and are being expensed in the period they are incurred.
The components of lease costs included in selling, general and administrative expenses on our consolidated
statements of operations for the New Jersey Lease, and the Foster City Lease were as follows:
Year Ended December 31,
(In thousands)
2025
2024
2023
Operating lease costs
$1,014
$987
$962
Variable lease costs
285
261
344
Total lease costs
$1,299
$1,248
$1,306
The undiscounted future non-cancellable lease payments under the New Jersey Lease and the Foster City
Lease as of December 31, 2025 were as follows (in thousands):
2026
$1,040
2027
716
2028
376
2029
383
2030
293
Thereafter
—
Total lease payments
2,808
Less: imputed interest
(363)
Total
$2,445
As of December 31, 2025, the weighted average remaining lease term in years and the weighted average
discount rate under the New Jersey Lease and the Foster City Lease were 3.5 years and 5.1%, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Mar 16, 2023
2021Mar 10, 2022
2020Mar 11, 2021
2019Mar 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.

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