MoonLake ImmunotherapeuticsMLTX

MoonLake Immunotherapeutics Leases Disclosure

10-KFiled Feb 25, 20263 min read
Leases
In August 2021, the Company entered into an open-ended office lease agreement, effective November 1, 2021, to lease approximately 2,300 square feet of space on the last two floors of the building located at Dorfstrasse 29, 6300 Zug, Switzerland. In December 2023, the contract was extended, leading to a new estimated effective duration of the lease period of 3 years, with expected expiration in January 2027.
On October 9, 2023, the Company entered into an office lease agreement, effective as of October 9, 2023, to lease approximately 3,900 square feet of office space on the fifth floor of the building located at Rua Manuel Pinto de
Azevedo 860, 4150-335, Porto, Portugal. This lease has a 3-year initial term, with two extendable periods of 3 years each. The Company expects to exercise the first available option and extend this lease through October 2029.
On October 13, 2023, the Company entered into an office lease agreement, effective as of October 16, 2023, to lease approximately 6,000 square feet of office space on the first floor of the building located at 95 Regent Street, CB2 1AW, Cambridge, England, United Kingdom. This lease has a 3-year term agreement and is set to expire in October 2026.
On December 12, 2023, the Company entered into an open-ended office lease agreement, effective as of January 15, 2024, to lease approximately 1,700 square feet of additional office space at its existing corporate headquarters located at Dorfstrasse 29, 6300 Zug, Switzerland. The Company estimated the duration of the lease at inception and determined a 3-year term.
On August 14, 2024, the Company entered into an office lease agreement, effective as of September 8, 2024, to lease approximately 2,000 square feet of additional office space at its existing office located at Rua Manuel Pinto de Azevedo 860, 4150-335, Porto, Portugal. This lease has a 2-year initial term, with two extendable periods of 3 years each. The Company currently expects that this lease will be extended until October 2029.
The weighted average remaining lease term and weighted average discount rate for the operating leases as of December 31, 2025 and 2024 were as follows:
December 31, 2025
December 31, 2024
Weighted average remaining lease term
22 months
29 months
Weighted average discount rate
4.6 
%
4.7 
%
The future minimum annual lease payments under these operating leases as of December 31, 2025 are as follows:
(in thousands)
Fiscal Year
Amount
2026
$
1,272
2027
147
2028
147
2029
100
Thereafter
—
Total lease payments
1,666
Less imputed interest
(58)
Total lease liabilities
1,608
Less: Short-term portion of operating lease liabilities
(1,234)
Long-term portion of operating lease liabilities
$
374
Operating cash outflows for amounts included in the measurement of lease liabilities were $1,555 thousand, $1,475 thousand and $422 thousand for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company recorded the following lease and variable lease expenses for the years ended December 31, 2025, 2024 and 2023:
(in thousands)
Year Ended December 31, 2025
Year Ended December 31, 2024
Year Ended December 31, 2023
Operating lease expense
$
1,460 
$
1,424 
$
400 
Variable lease expense (1)
54
16 
— 
Total lease expense
$
1,514
$
1,440
$
400
(1) Variable lease expense resulting from increased lease payments linked to changes in the reference index.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 29, 2024
2022Mar 20, 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.

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