Century Therapeutics, Inc. Leases Disclosure
Note 11—Leases
The Company has commitments under operating leases for certain facilities used in its operations. The Company maintains security deposits on certain leases in the amounts of $403 and $413 within security deposits and noncurrent assets in its consolidated balance sheets at December 31, 2024 and 2023, respectively. The Company’s leases have initial lease terms ranging from to 16 years. Certain lease agreements contain provisions for future rent increases. Variable lease costs generally include common area maintenance and real estate taxes.
The following table reflects the components of lease expense:
For the | For the | |||||
Year Ended | Year Ended | |||||
December 31, 2024 | December 31, 2023 | |||||
Operating lease expense: |
| |||||
Fixed lease cost | $ | 6,791 | $ | 5,755 | ||
Variable lease cost |
| 2,598 |
| 1,403 | ||
Short term lease expense | — | 906 | ||||
Total operating lease expense | $ | 9,389 | $ | 8,064 | ||
The following table reflects supplemental balance sheet information related to leases:
| As of | As of | |||||||
|
| December 31, |
| December 31, | |||||
Location in Balance Sheet | 2024 | 2023 | |||||||
Operating lease right-of-use asset, net |
| Operating lease right-of-use assets | $ | 28,706 | $ | 20,376 | |||
Operating lease liability, current |
| $ | 4,870 | $ | 1,513 | ||||
Operating lease liability, long-term |
| Operating lease liability, long-term |
| 48,960 |
| 46,658 | |||
Total operating lease liability |
|
| $ | 53,830 | $ | 48,171 | |||
The following table reflects supplement lease term and discount rate information related to leases:
| As of December 31, 2024 |
| As of December 31, 2023 |
| |
Weighted-average remaining lease terms - operating leases |
| 7.4 Years | 7.6 years | ||
Weighted-average discount rate - operating leases |
| 10.4 | % | 9.9 | % |
For the Year Ended | For the Year Ended | ||||||
| December 31, 2024 |
| December 31, 2023 | ||||
Operating cash flows from operating leases | $ | (3,365) | $ | 13,819 | |||
The following table reflects future minimum lease payments under noncancelable leases as of December 31, 2024:
| Operating Leases | ||
2025 | $ | 9,766 | |
2026 |
| 9,327 | |
2027 |
| 9,573 | |
2028 |
| 9,826 | |
2029 |
| 10,085 | |
Thereafter |
| 36,029 | |
Total lease payments |
| 84,606 | |
Less: Imputed interest |
| (26,632) | |
Less: Tenant incentive receivable | (4,144) | ||
Total | $ | 53,830 | |
During the year ended December 31, 2023, the Company recognized $4,943 in impairment on right-of-use assets. See Note 18, “Impairment on Long-Lived Assets”. There were no impairment charges during the year ended December 31, 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.