TG THERAPEUTICS, INC. Leases Disclosure

NOTE 8– LEASES

 

In October 2014, the Company entered into an agreement (the Office Agreement) with Fortress Biotech, Inc. (FBIO) to occupy approximately 45% of the 24,000 square feet of New York City office space leased by FBIO. The Office Agreement requires the Company to pay its respective share of the average annual rent and other costs of the 15-year lease. The Company estimates an average annual rental obligation of $1.8 million under the Office Agreement. In connection with the Office Agreement, the Company pledged $1.3 million to secure a line of credit as a security deposit, which is recorded as restricted cash in the accompanying consolidated balance sheets. The Company began to occupy this office space in April 2016, with rental payments beginning in the third quarter of 2016. In February 2026, FBIO entered into a sublease agreement with a third party for the entirety of the New York City office space subject to the Office Agreement. The Company remains obligated under the Office Agreement to pay its respective share of the rent and other related costs through the expiration of the lease term. Under the terms of the arrangement, the Company may be required to fund its proportionate share of any shortfall between the head lease obligations and sublease income. This transaction is expected to significantly reduce the Company’s net rent expense prospectively.

 

In October 2021, the Company finalized a five-year lease for office space in North Carolina (the NC Lease). The Company estimates an average annual rental obligation of $0.2 million under the NC Lease. The Company took possession of this space in February 2022, with rental payments beginning in April 2022.

 

The present values of the Company's lease liability and corresponding Right-of-Use (ROU) asset are $8.1 million and $6.3 million, respectively, as of  December 31, 2025. The Company's leases have remaining lease terms of two to six years. One lease has a renewal option to extend the lease for an additional term of two years. The following components of lease expense are included in the consolidated statements of operations for the year ended  December 31, 2025.

 

Operating lease cost was $1.9 million, $2.3 million and $2.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

As of December 31, 2025, the weighted-average remaining operating lease term was 5.2 years and the weighted-average discount rate for operating leases was 10.10%. Cash paid for amounts included in the measurement of operating lease liabilities during the year ended December 31, 2025 was $2.1 million.

 

The balance sheet classification of lease liabilities was as follows:

 

		December 31,				December 31,
(in thousands)		2025				2024
Liabilities
Lease liability current portion		$	1,044			$	1,157
Lease liability non-current			7,021				8,133
Total lease liability		$	8,065			$	9,290

 

As of December 31, 2025, the maturities of lease liabilities were as follows:

 

		Operating
		leases
2026		$	2,080
2027			1,913
2028			1,827
2029			1,827
After 2030			2,889
Total lease payments			10,536
Less: interest			(2,471	)
Present value of lease liabilities(*)		$	8,065

 

(*) As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date and considering the term of the lease to determine the present value of lease payments. The Company used the incremental borrowing rate of 10.25% on February 28, 2019, for operating leases that commenced prior to that date through December 31, 2021. The Company used an incremental borrowing rate of 5.65% for the NC lease.