5. Leases

The Company’s headquarters are located in Boulder, Colorado, where it leases 14,790 square feet of office and lab facilities under operating leases that expire in December 2026, with rights to extend for a five-year period. In the Merger with Reneo, the Company assumed the lease in Irvine, California, where it leases office space under a lease agreement that expires in November 2026 (“Irvine lease”). In January 2025, the Company entered into a sublease on the Irvine lease for all of the leased square footage, which expires in November 2026. Payments received under the sublease for the year ended December 31, 2025 were $231 thousand and were netted against operating lease costs in the Statement of Operations.

Right-of-use assets and lease liabilities for operating leases as included in the Company’s consolidated financial statements are as follows (in thousands):

 

 

December 31,
2025

 

 

December 31, 2024

 

Operating lease right-of-use assets

 

$

387

 

 

$

770

 

Current operating lease liabilities

 

 

549

 

 

 

536

 

Noncurrent operating lease liabilities

 

 

 

 

 

549

 

Total lease liabilities

 

$

549

 

 

$

1,085

 

 

Lease expense for operating leases, net of sublease receipts, as included in the Company’s consolidated financial statements are as follows (in thousands):

 

 

December 31,

 

 

2025

 

 

2024

 

Operating lease cost

$

187

 

 

$

236

 

Variable lease expense

 

162

 

 

 

187

 

 

Lease term, discount rates, and additional information for operating leases are as follows (in thousands):

 

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

Weighted-average remaining lease term - operating leases (years)

 

0.87

 

 

1.87

 

Weighted-average discount rate - operating leases

 

 

4.5

%

 

 

4.5

%

Cash paid for amounts included in the measurement of
  lease liabilities:

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

571

 

 

$

315

 

 

The aggregate maturities of the Company’s operating lease liabilities were as follows as of December 31, 2025 (in thousands):

 

2026

$

560

 

Total future minimum lease payments

 

560

 

Less: imputed interest

 

(11

)

Less: current portion

 

(549

)

Operating lease liability, net of current portion

$

 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 10, 2025
2023Mar 28, 2024
2022Mar 27, 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.