Protara Therapeutics, Inc. Leases Disclosure

9. Leases

 

Operating leases

 

In December 2020, the Company entered into an agreement to lease approximately 10,000 square feet of office space in New York, New York, or the Office Lease, which commenced in April 2021. The Office Lease has a term of approximately seven years and contains provisions for a free-rent period, annual rent increases and an allowance for tenant improvements. The Company has an option to extend the term by five years, however, the Company determined at the lease commencement date that it was not reasonably certain to exercise the renewal option and such renewal was excluded from the operating lease ROU asset and operating lease liability recorded for this lease.

The Company is responsible for real estate taxes, maintenance and other operating expenses applicable to the leased premises which are recognized as variable lease expense in the period when incurred. In conjunction with the Office Lease, the Company established a letter of credit of approximately $745 secured by cash balances included in restricted cash, non-current, within the consolidated balance sheets.

 

In June 2021, the Company amended the existing lease agreement with its contract development and manufacturing organization, or CDMO, establishing a term of eight-years from the amendment date.

 

Leases classified as operating leases are included in operating lease ROU assets, operating lease liabilities and operating lease liabilities, non-current in the Company’s consolidated balance sheets. The Office Lease and the CDMO leased spaces are included in operating lease ROU assets and operating lease liabilities within the consolidated balance sheets. The Office Lease and the CDMO leased spaces are located within the U.S. Cash paid for operating lease liabilities was $1,395 and $1,327 during the years ended December 31, 2025 and 2024, respectively.

   

Lease expense consist of the following:

 

		For the Year Ended December 31,
Lease expense		2025				2024
Operating lease expense		$	1,353			$	1,353
Total		$	1,353			$	1,353

 

Variable lease expense was $124 and $99 for the years ended December 31, 2025 and 2024, respectively.

 

The weighted average discount rate and weighted-average remaining lease term for operating leases were:

 

		As of December 31,
		2025				2024
Weighted-average discount rate			7.0	%			7.0	%
Weighted-average remaining lease term – operating lease (in months)			31				43

 

As of December 31, 2025, the expected annual minimum lease payments of the Company’s operating lease liabilities were as follows:

 

For the year ending December 31:		Operating Lease Payments
2026		$	1,429
2027			1,429
2028			718
2029			87
Thereafter			-
Total future operating lease payments			3,663
Less: imputed interest			(304	)
Present value of future minimum lease payments		$	3,359