Surrozen, Inc./DE Leases Disclosure
Note 5. Leases
In August 2016, the Company entered into a lease agreement for office and lab space, which consists of approximately 32,813 square feet of rental space in South San Francisco, California. The office space lease is classified as an operating lease. The initial lease term commenced in May 2017 and ended in April 2025, with rent payments escalating each year. In October 2024, the Company amended its existing lease agreement to extend the lease term from April 2025 to April 2029. The Company has an option to extend the lease for an additional four-year period. The future exercise of the option is not reasonably certain.
In connection with the lease, the Company maintains a letter of credit for the benefit of the landlord in the amount of $0.4 million, which is recorded as restricted cash in the consolidated balance sheets.
The operating lease expense for the years ended December 31, 2025 and 2024 was $2.4 million and $1.8 million, respectively.
Aggregate future minimum rental payments under the operating leases as of December 31, 2025, were as follows (in thousands):
Year ending December 31, 2026 |
|
$ |
1,797 |
|
Year ending December 31, 2027 |
|
|
2,461 |
|
Year ending December 31, 2028 |
|
|
2,547 |
|
Year ending December 31, 2029 |
|
|
857 |
|
Total lease payments |
|
|
7,662 |
|
Less: Imputed interest |
|
|
(1,023 |
) |
Operating lease liabilities |
|
$ |
6,639 |
|
The following represents supplemental information related to the Company’s operating leases:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of lease liabilities (in thousands) |
|
$ |
2,440 |
|
|
$ |
2,670 |
|
Weighted-average remaining lease term (in years) |
|
|
3.33 |
|
|
|
4.33 |
|
Weighted-average discount rate |
|
|
8.25 |
% |
|
|
8.25 |
% |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 10, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 28, 2022 | |
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.