Harmony Biosciences Holdings, Inc. Leases Disclosure
12. LEASES
Beginning in June 2018, the Company was party to an operating lease and subsequent amendments for three office suites of approximately fifteen thousand square feet, seven thousand square feet and thirteen thousand square feet in Plymouth Meeting, PA, which was set to expire in November 2025. In November 2025, the Company entered into a new operating lease amendment (the “PM Lease Amendment”) extending the lease through March 31, 2031. The terms of the PM Lease Amendment provide for fixed rental payments on a monthly basis and on a graduated scale. Additionally, the terms of the PM Lease Amendment also provide the Company with an option to extend the lease for two additional five-year periods and an option to early terminate the lease effective on the month, which were not considered in the determination of the operating lease right-of-use asset (“ROU asset”) or operating lease liability as neither option is reasonably certain to be exercised by the Company.
The Company also leases a fleet of automobiles that are used by its sales representatives and are classified as operating leases.
As the rate implicit in the lease is not readily determinable, the Company’s operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using the Company’s incremental borrowing rate, defined as the rate of interest that it would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. As a policy election, leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company’s leases have remaining lease terms of less than 1 year to approximately 5 years, some of which may include the option to extend or terminate the leases.
The Company recorded operating lease costs of $1,971, $2,099 and $1,811 for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, the weighted-average remaining lease term for operating leases was 4.6 years and the weighted-average discount rate for operating leases was 7.6%.
Supplemental balance sheet information related to operating leases was as follows:
Leases | Classification | December 31, 2025 | | December 31, 2024 | ||
Assets | ||||||
Operating lease right-of-use assets | $ | 5,344 | $ | 2,122 | ||
Liabilities | ||||||
Operating lease liability, current portion | $ | 1,073 | $ | 1,318 | ||
Operating lease liability, long-term | 4,512 | 822 | ||||
Total operating lease liabilities | $ | 5,585 | $ | 2,140 |
Supplemental cash flow information related to operating leases was as follows:
December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||
Operating cash flows from operating leases | $ | 1,995 | $ | 2,156 | $ | 2,016 | ||
Right of use assets obtained in exchange for operating lease obligations | $ | 4,795 | $ | 1,877 | $ | 2,163 |
Future payments under non-cancelable operating leases with initial terms of one year or more as of December 31, 2025, consisted of the following:
Years ending December 31, | | ||
2026 | $ | 1,447 | |
2027 |
| 1,307 | |
2028 |
| 1,229 | |
2029 |
| 1,180 | |
2030 |
| 1,215 | |
Thereafter |
| 311 | |
Total lease payments | 6,689 | ||
Less: imputed interest | (1,104) | ||
Total lease liabilities | $ | 5,585 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 28, 2022 | |
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.