Nuvation Bio Inc. Leases Disclosure
NOTE 8. LEASES
Our principal executive offices are located in New York, New York, where we lease approximately 7,900 square feet of office space under a lease that terminates in 2027, with an option for us to extend the lease for an additional five years which is not reasonably assured of exercise, and in San Francisco, where we lease approximately 19,418 square feet of office space that terminates in 2029. We also occupy office space located in Burlington, Massachusetts, where we lease approximately 2,235 square feet of office space under a lease that terminates in 2027, as well as a total of approximately 1,799 square meters of office space in the People’s Republic of China, in the cities of Beijing, Guangzhou, Hangzhou and Shanghai, under leases that terminate in 2026 through 2029.
Operating lease expense was $2.8 million and $2.5 million for the years ended December 31, 2025 and 2024, respectively. Expense related to variable leases was not significant for the years ended December 31, 2025 and 2024. Operating cash flows for the year ended December 31, 2025 and 2024 included $2.5 million and $2.6 million, respectively.
The following table presents the future minimum lease analysis of the Company's operating lease liabilities showing the aggregate lease payments as of December 31, 2025.
|
|
December 31, 2025 |
|
|
|
|
(In thousands) |
|
|
2026 |
|
$ |
2,192 |
|
2027 |
|
|
1,407 |
|
2028 |
|
|
1,219 |
|
2029 |
|
|
162 |
|
Total undiscounted lease payments |
|
|
4,980 |
|
Less: imputed interest |
|
|
(557 |
) |
Total operating lease liabilities |
|
$ |
4,423 |
|
The weighted average incremental borrowing rate used to determine the operating lease liabilities was 9.02%. The Company's weighted average remaining lease term was 2.64 years as of December 31, 2025.
As of December 31, 2025, the Company had $21.6 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the consolidated balance sheet. The operating lease will commence in the second half of 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
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.