KalVista Pharmaceuticals, Inc. Leases Disclosure
Note 10. Leases
The Company has a lease agreement for approximately 8,300 square feet of space for its headquarters located in Cambridge, Massachusetts that runs through September 2028.
The Company has lease agreements for approximately 13,400 square feet of office and research laboratory space located in Porton Down, United Kingdom that runs through April 2028.
The Company has a lease agreement in Salt Lake City, Utah for approximately 6,200 square feet of office space that commenced in November 2021 that runs through February 2032.
The Company has a lease agreement for approximately 500 square feet of research laboratory space in Cambridge, Massachusetts that commenced in July 2022 with an option to renew annually.
The Company has a lease agreement for office space in Zug, Switzerland that commenced in August 2023 with an option to renew annually.
The Company has a lease agreement for office space in Tokyo, Japan that commenced in April 2024 and runs through April 2026.
The Company is also party to several operating leases for office and laboratory space as well as certain lab equipment. Total rent expense was $2.0 million, $1.8 million and $1.7 million for the years ended April 30, 2024, 2023 and 2022, respectively and is reflected in general and administrative expenses and research and development expenses as determined by the underlying activities.
Incremental borrowing rate – The Company’s lease agreements do not provide an implicit rate. The Company estimated the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term and economic environment.
Lease and non-lease components – The Company has elected the practical expedient which allows non-lease components to be combined with lease components for all existing asset classes and will therefore include any fixed additional rent amounts in its lease payments. Any variable lease payments are excluded from the lease liability and are recognized in the period incurred.
The following table summarizes lease costs included in research and development and general and administrative expense for the years ended April 30, 2024 and 2023 (in thousands):
|
2024 |
|
2023 |
|
||
Operating lease costs |
$ |
1,813 |
|
$ |
1,806 |
|
Short-term lease costs |
|
114 |
|
|
13 |
|
Variable lease costs |
|
238 |
|
|
174 |
|
Total lease costs |
$ |
2,165 |
|
$ |
1,993 |
|
The following table summarizes the undiscounted payments due under lease liabilities and the present value of those liabilities as of April 30, 2024 (in thousands):
Years ending April 30, |
|
Operating |
|
|
2025 |
|
$ |
1,867 |
|
2026 |
|
|
1,896 |
|
2027 |
|
|
1,849 |
|
2028 |
|
|
1,870 |
|
2029 |
|
|
848 |
|
Thereafter |
|
|
664 |
|
Total lease payments |
|
|
8,994 |
|
Less: imputed interest |
|
|
1,677 |
|
Total lease liabilities |
|
|
7,317 |
|
Current lease liabilities |
|
|
1,302 |
|
Long-term lease liabilities |
|
$ |
6,015 |
|
The following table summarizes the lease term and discount rate as of April 30, 2024 and 2023:
|
|
2024 |
|
2023 |
|
||
Weighted-average remaining lease term (years) |
|
|
5.0 |
|
|
6.0 |
|
Weighted-average discount rate |
|
|
9.0 |
% |
|
9.0 |
% |
The following table summarizes the cash paid for amounts included in the measurement of lease liabilities for the years ended April 30, 2024 and 2023 (in thousands):
|
|
2024 |
|
2023 |
|
||
Cash paid for amounts included in the measurement of operating lease liabilities |
|
$ |
1,683 |
|
$ |
1,615 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Jul 11, 2024 | Showing above |
| 2023 | Jul 10, 2023 | |
| 2022 | Jul 7, 2022 | |
| 2021 | Jul 13, 2021 | |
| 2020 | Jul 1, 2020 | |
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.