SPRUCE BIOSCIENCES, INC. Leases Disclosure
5. Leases
The Company leases space under a non-cancelable operating lease, which requires the Company to pay base rent, real estate taxes, insurance, general repairs, and maintenance.
In December 2022, the Company entered into a non-cancelable operating lease for approximately 6,500 square feet of office space in South San Francisco, California, which commenced in December 2022 and expires in February 2028 (the “South San Francisco Lease”). Total minimum rental payments for the South San Francisco Lease are $1.7 million over the lease term. The Company has an option to extend the lease term of the South San Francisco Lease for an additional three years which has not been included in the lease term as it is not reasonably certain that the Company will exercise this option. The Company will also be responsible for the payment of additional rent to cover the Company's share of the annual operating and tax expense for the building. Under the terms of the South San Francisco Lease, the Company issued a letter of credit to the landlord of $29 thousand, which is collateralized by a restricted cash deposit of $36 thousand as of December 31, 2025.
Other information related to the operating lease was as follows (dollar amounts in thousands):
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Operating lease costs |
|
$ |
337 |
|
|
$ |
336 |
|
Cash paid for operating lease liabilities |
|
$ |
354 |
|
|
$ |
344 |
|
Weighted average remaining lease term (years) |
|
|
2.2 |
|
|
|
3.2 |
|
Weighted average discount rate |
|
|
8.0 |
% |
|
|
8.0 |
% |
Variable lease expense for the years ended December 31, 2025 and 2024 was immaterial.
Future minimum lease commitments under the Company’s leases as of December 31, 2025 were as follows (in thousands):
Year ending December 31, |
|
|
|
|
2026 |
|
|
365 |
|
2027 |
|
|
376 |
|
2028 |
|
|
64 |
|
Total undiscounted lease payments |
|
|
805 |
|
Less: present value discount |
|
|
(69 |
) |
Total lease liabilities |
|
$ |
736 |
|
* |
|
$ |
317 |
|
Lease liabilities, net of current portion |
|
|
419 |
|
Total lease liabilities |
|
$ |
736 |
|
|
|
|
|
|
* included in accrued expenses and other current liabilities on the balance sheets |
|
|||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Mar 18, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 22, 2021 | |
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.