Humacyte, Inc. Leases Disclosure
9. Leases
On September 29, 2025, we executed a Sixth Amendment to our lease agreements. The amendment extends the non-cancelable term to March 31, 2037, resets base rent effective January 1, 2026 with 3% annual escalations thereafter, and provides two rent abatement periods (January 1, 2026, through March 31, 2026, and January 1, 2027, through March 31, 2027). Accounting for the amendment resulted in remeasurement of the lease liability and right-of-use asset as of September 30, 2025 using our incremental borrowing rate at that date.
As a result, during the year ended December 31, 2025, the Company recorded a net non-cash increase of $15.0 million to right-of-use assets and lease liabilities resulting from lease remeasurements associated with the lease modification.
As of December 31, 2025 and December 31, 2024, the Company had finance lease liabilities of $29.4 million and $16.5 million, respectively, and right-of-use assets of $29.1 million and $15.5 million, respectively. As of December 31, 2024, the Company had operating lease liabilities of $0.6 million, primarily included in with the remaining balance classified in other current liabilities, and related right-of-use assets of $0.6 million included in on the consolidated balance sheets. As of December 31, 2025, the Company had no operating lease liabilities or right-of-use assets on the condensed consolidated balance sheets.
The Company’s lease does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The Company’s lease includes renewal options and escalation clauses; renewal options have been included in the calculation of the lease liabilities and right-of-use assets as the Company is reasonably certain to exercise the options due to the specialized nature of the leased building. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does not act as a lessor in any lease arrangements.
The following summarizes quantitative information about the Company’s leases:
|
|
Year Ended December 31, |
|
|||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
||
Finance lease cost |
|
|
|
|
|
|
||
Amortization of right-of-use assets |
|
$ |
2,017 |
|
|
$ |
2,086 |
|
Interest on lease liabilities |
|
|
1,624 |
|
|
|
1,523 |
|
Total finance lease cost |
|
|
3,641 |
|
|
|
3,609 |
|
Operating lease cost |
|
|
79 |
|
|
|
105 |
|
Total lease cost |
|
$ |
3,720 |
|
|
$ |
3,714 |
|
|
|
Year Ended |
|
|
Year Ended |
|
||||||||||
($ in thousands) |
|
Finance |
|
|
Operating |
|
|
Finance |
|
|
Operating |
|
||||
Operating cash flows from leases |
|
$ |
(1,624 |
) |
|
$ |
(79 |
) |
|
$ |
(1,523 |
) |
|
$ |
(105 |
) |
Financing cash flows from leases |
|
$ |
(2,754 |
) |
|
$ |
— |
|
|
$ |
(2,579 |
) |
|
$ |
— |
|
Weighted-average remaining lease term |
|
|
9.90 |
|
|
n/a |
|
|
|
3.74 |
|
|
|
4.25 |
|
|
Weighted-average discount rate |
|
|
8.50 |
% |
|
|
— |
|
|
|
8.50 |
% |
|
|
8.50 |
% |
As of December 31, 2025, the maturities of the Company’s lease liabilities were as follows:
($ in thousands) |
|
Finance Leases |
|
|
2026 |
|
$ |
2,428 |
|
2027(a) |
|
|
(301 |
) |
2028 |
|
|
2,500 |
|
2029 |
|
|
3,537 |
|
2030 |
|
|
3,643 |
|
Thereafter |
|
|
49,358 |
|
Total |
|
|
61,165 |
|
Less: present value discount |
|
|
(31,763 |
) |
Lease liabilities |
|
$ |
29,402 |
|
________________________
(a) For the year ending 2027, the negative amount reflects a reimbursement from the lessor for tenant improvement costs. The reimbursement exceeds the scheduled lease payments for that period.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 28, 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.