Mereo BioPharma Group plc Leases Disclosure
7. Leases
In August 2015, the Company entered into a lease agreement under which it leased office space located on the fourth floor of One Cavendish Place, London, with a lease term ending in August 2025. In June 2021, the Company entered into a new lease agreement to lease additional office space located on the fifth floor of that building for a lease period ending in . At the same time, the Company entered into a reversionary lease to extend the term for the original fourth floor lease to be coterminous with the fifth floor, ending in .
The total lease expense included in the statements of operations and comprehensive loss was $0.7 million and $0.7 million for the year ended December 31, 2025 and 2024, respectively. There were no material variable lease costs.
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As of December 31, |
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2025 |
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2024 |
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Operating leases |
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Weighted-average remaining contractual lease term (years) |
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0.50 |
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1.50 |
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Weighted average discount rate |
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10.0 |
% |
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10.0 |
% |
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Year Ended December 31, |
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2025 |
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2024 |
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($'000) |
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($'000) |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows from operating leases |
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$ |
807 |
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$ |
780 |
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The following table summarizes the maturities of the Company’s operating lease liabilities as of December 31, 2025:
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As of December 31, 2025 |
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($'000) |
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Maturity analysis of the operating lease liabilities for the years ending December 31, |
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2026 |
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$ |
205 |
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Total undiscounted payments |
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205 |
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Less: Present value discount |
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(3 |
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Lease liability |
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$ |
202 |
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Lease liability – current |
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$ |
202 |
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Lease liability – non-current |
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$ |
— |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 27, 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.