Tvardi Therapeutics, Inc. Leases Disclosure
8. Leases
The Company has one operating lease pertaining to 5,969 square feet of corporate office space in Sugar Land, Texas pursuant to a lease agreement that commenced April 1, 2022. As of December 31, 2025, the remaining term of lease was 1.58 years. The lease requires monthly lease payments that are subject to annual increases throughout the lease term.
The components of lease costs, which are included within general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss were as follows (in thousands):
| For the Year Ended | |||||
December 31, | ||||||
| 2025 | | 2024 | |||
Lease costs: |
| |
| | ||
Operating lease cost | $ | 96 | $ | 96 | ||
Variable lease cost |
| 83 |
| 80 | ||
Total lease costs | $ | 179 | $ | 176 | ||
Supplemental disclosure of cash flow information related to the lease were as follows (in thousands):
| For the Year Ended | |||||
December 31, | ||||||
| 2025 | | 2024 | |||
Operating cash flows from operating leases | $ | 200 | $ | 197 | ||
The weighted-average discount rate and remaining lease term were as follows:
| For the Year Ended |
| |||
December 31, |
| ||||
| 2025 | | 2024 |
| |
Weighted-average discount rate |
| 9.50 | % | 9.50 | % |
Weighted-average remaining lease term |
| 1.58 |
| 2.58 | |
As of December 31, 2025, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
Year Ended December 31, | | Amount | |
2026 | $ | 129 | |
2027 |
| 88 | |
Total lease payments |
| 217 | |
Less: imputed interest |
| (16) | |
Present value of lease liabilities |
| 201 | |
Less: operating lease liabilities, current portion | $ | 116 | |
Operating lease liabilities, net of current portion | $ | 85 | |
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.