Viking Therapeutics, Inc. Leases Disclosure
As of December 31, 2025, the Company has one operating lease (the “Office Lease”) and one operating sublease (the "Office Sublease"). The Office Lease is for office space under a lease that commenced on March 1, 2022 and expires on March 31, 2026 (the “Term”). The Office Sublease is for office space under a sublease that commenced on September 16, 2024 and expires on March 31, 2026 (the
"Sublease Term"). Refer to Note 10 for information regarding the updated lease expiry. Below is a summary of the Company’s ROU assets and lease liabilities as of December 31, 2025 and December 31, 2024 (in thousands, except for years and %):
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December 31, |
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December 31, |
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Right of use assets |
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$ |
85 |
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$ |
1,003 |
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Lease liability obligations, current |
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$ |
137 |
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$ |
489 |
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Lease liability obligations, less current portion |
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— |
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630 |
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Total lease liability obligations |
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$ |
137 |
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$ |
1,119 |
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Weighted-average remaining lease term |
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0.25 years |
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2.57 years |
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Weighted-average discount rate |
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6.28 |
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% |
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3.65 |
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% |
During the years ended December 31, 2025, 2024 and 2023, the Company recognized $500,000, $404,000 and $339,000, respectively, in operating lease expenses, which are included in operating expenses in the Company’s statements of operations.
Approximate future minimum lease payments for the Company’s right-of-use assets over the remaining lease period as of December 31, 2025 are as follows (in thousands):
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2026 |
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139 |
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2027 |
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— |
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Total minimum lease payments |
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$ |
139 |
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Less: amount representing interest |
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$ |
(2 |
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Total lease liability obligations |
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$ |
137 |
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The Office Lease provides the Company with an option to extend the term of the Office Lease for a period of five years beyond the Term. If the option is exercised, the renewal term will be upon the same terms and conditions as the original Office Lease, except that the base rent will be equal to the prevailing market rate as determined pursuant to the terms of the Office Lease.
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.