Jade Biosciences, Inc. Leases Disclosure
13. Leases
In February 2025, the Company entered into a noncancelable operating lease agreement for office space located in Vancouver, Canada. The lease commencement date is March 1, 2025, with an initial term of 67 months. The rent commencement date is October 1, 2025. The total lease payment is expected to be approximately $1.2 million of principal payments plus $0.4 million of interest payments over the initial lease term. Payments for rent are made in Canadian dollars and therefore subject to foreign exchange impact. Lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate when measuring operating lease liabilities as discount rates were not implicit or readily determinable.
As of December 31, 2025, the Company had $0.7 million of operating lease ROU asset and long-term lease liability of $0.7 million on its consolidated balance sheets. As of December 31, 2025, the operating lease arrangement had a remaining lease term of 4.8 years and an internal borrowing rate of return of 14.24%. For the twelve months ended December 31, 2025, the Company recorded operating lease expense of $0.2 million, respectively, in general and administrative expenses in its consolidated statements of operations and comprehensive loss.
As of December 31, 2025, the total remaining operating lease payments included in the measurement of lease liabilities was as follows (in thousands):
Period ended December 31, |
|
|
|
|
2026 |
|
|
226 |
|
2027 |
|
|
231 |
|
2028 |
|
|
236 |
|
2029 |
|
|
240 |
|
2030 |
|
|
183 |
|
Total maturities |
|
$ |
1,116 |
|
Less: Imputed interest |
|
|
(265 |
) |
Total present value of operating lease liability |
|
$ |
851 |
|
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.