NOVAVAX INCNVAX

NOVAVAX INC Leases Disclosure

10-KFiled Feb 26, 20263 min read
Leases
The Company has operating and finance leases for its research and development and manufacturing facilities, corporate headquarters and offices as well as embedded leases related to manufacturing supply agreements with CMOs. During the year ended December 31, 2025, as part of it’s global restructuring and cost reduction plan (“Restructuring Plan”), the Company classified its corporate headquarters facility at 700 Quince Orchard, Gaithersburg, Maryland (“700QO”), together with its related finance lease obligation, certain related property and equipment and land parcel adjacent to the facility (collectively referred to as the "Disposal Group"), as held for sale (see Note 19). As of December 31, 2025, the assets and liabilities of the Disposal Group were classified as held for sale and were presented separately in Current assets and Current liabilities on the consolidated balance sheet. As a result of this classification, the 700QO ROU asset and lease liability balance as of December 31, 2025, are excluded from the lease balances and related disclosures presented in the Supplemental balance sheet information table below.
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 was as follows (in thousands, except weighted-average remaining lease term and discount rate):
December 31,
Lease Assets and LiabilitiesClassification20252024
Assets:
ROU assets, operating, net
Right-of-use asset, net
$20,332$21,846
ROU assets, finance, net
Right-of-use asset, net
2,565139,739
Total non-current ROU assets$22,897$161,585
Liabilities:
Current portion of operating lease liabilitiesOther current liabilities$9,878$10,094
Current portion of finance lease liabilitiesCurrent portion of finance lease liabilities2,5077,009
Total current lease liabilities$12,385$17,103
Non-current portion of operating lease liabilitiesOther non-current liabilities $19,359$22,958
Non-current portion of finance lease liabilitiesNon-current finance lease liabilities2,09153,726
Total non-current lease liabilities$21,450$76,684
Weighted-average remaining lease term (years):
Operating leases3.44.3
Finance leases2.510.7
Weighted-average discount rate:
Operating leases6.5%6.4%
Finance leases8.7%9.0%
Lease expense for the operating, short-term and finance leases for the years ended December 31, 2025, 2024, and 2023 was as follows (in thousands):
Year Ended December 31,
202520242023
Operating lease expense$5,944 $9,005 $6,929 
Short-term lease expense (benefit(1))
— (26,619)(48,009)
Variable lease expense2,585 6,831 10,292 
Finance lease expense:
ROU assets expensed$8,979 $11,737 $12,876 
Interest expense5,199 5,697 2,605 
Total finance lease expense$14,178 $17,434 $15,481 
(1)    During the year ended December 31, 2024 and 2023, the Company recognized a short-term lease benefit of $26.6 million and $48.0 million, respectively, due to gains on the settlement of manufacturing supply agreements with CMOs and CDMOs that included embedded leases.
Supplemental cash flow information related to leases for the year ended December 31, 2025, 2024, and 2023 was as follows (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$9,665 $63,673 $101,297 
Operating cash flows used in finance leases5,199 5,697 2,605 
Financing cash flows used in finance leases10,071 3,994 27,345 
ROU assets obtained in exchange for operating lease obligations$1,167 $3,987 $— 
ROU assets obtained in exchange for finance lease obligations1,803 3,664 103,299 
As of December 31, 2025, maturities of lease liabilities were as follows (in thousands):
Year
Operating
Finance
2026$10,284 $2,823 
20278,170 966 
20288,376 966 
20294,233 483 
20301,405 — 
Thereafter— — 
Total minimum lease payments32,468 5,238 
Less: imputed interest3,231 640 
Total lease liabilities$29,237 $4,598 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 11, 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.

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