Disc Medicine, Inc. Leases Disclosure
16. Leases
The Company has an operating lease and sublease for office space which serves as the Company's corporate headquarters. The Company's sublease and lease expire in and , respectively. The Company's leases do not contain any material residual value guarantees or restrictive covenants. Operating leases are recognized on the consolidated balance sheets as right-of-use assets, operating leases, operating lease liabilities, current and operating lease liabilities, non-current. Operating lease expense is recognized on a straight-line basis over the lease term within the Company’s consolidated statements of operations and comprehensive loss.
In August 2024, the Company amended its lease for 7,566 square feet of office space used as its corporate headquarters, extending the lease term from November 30, 2026 to December 31, 2029. In connection with this amendment, the Company entered into a forward-starting lease for office space currently under sublease, which is expected to commence on December 1, 2026 and expire on December 31, 2029. The Company expects total undiscounted payments of $1.3 million over the lease term. As of December 31, 2025, the forward-starting lease is not recorded on the consolidated balance sheets and will be recognized upon lease commencement.
The components of lease expense were as follows (in thousands):
|
|
Year Ended |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease costs |
|
$ |
668 |
|
|
$ |
641 |
|
|
$ |
422 |
|
Variable lease costs |
|
|
486 |
|
|
|
486 |
|
|
|
159 |
|
Total lease expense |
|
$ |
1,154 |
|
|
$ |
1,127 |
|
|
$ |
581 |
|
The weighted average remaining lease term and discount rate were as follows:
|
|
As of December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term |
|
3.2 years |
|
|
3.5 years |
|
||
Weighted-average discount rate |
|
|
10.3 |
% |
|
|
10.3 |
% |
The following table presents the future minimum lease payments under the Company's lease liabilities as of December 31, 2025, (in thousands):
|
|
Operating Leases |
|
|
2026 |
|
$ |
737 |
|
2027 |
|
|
285 |
|
2028 |
|
|
389 |
|
2029 |
|
|
401 |
|
2030 |
|
|
— |
|
Total minimum lease payments |
|
$ |
1,812 |
|
Less: imputed interest |
|
|
(294 |
) |
Lease liabilities |
|
$ |
1,518 |
|
The table above does not include contractual rent payments under the forward-starting lease which are expected to total $1.3 million on an undiscounted basis. The Company has also recorded deferred lease incentives associated with the forward-starting lease of $0.3 million within operating lease liabilities, non-current on the consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 31, 2023 | |
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.