Verastem, Inc. Leases Disclosure
9. Leases
On April 15, 2014, the Company entered into a lease agreement for approximately 15,197 square feet of office and laboratory space in Needham, Massachusetts. The lease term commenced on April 15, 2014 and it was scheduled to expire on September 30, 2019. Effective February 15, 2018, the Company amended its lease agreement to relocate within the facility to another location consisting of 27,810 square feet of office space (the “February 2018 Amended Lease Agreement”). The February 2018 Amended Lease Agreement extended the expiration date of the lease from September 2019 through June 2025. Pursuant to the February 2018 Amended Lease Agreement, the initial annual base rent amount was approximately $0.7 million, which increased during the lease term to $1.1 million for the last 12-month period. Effective November 1, 2024, the Company amended the February 2018 Amended Lease Agreement to extend the expiration date from June 2025 to June 2026 (the “November 2024 Amended Lease Agreement”). The payment terms of the November 2024 Amended Lease Agreement are $1.1 million per annum through the expiration date in June 2026. As a result of the November 2024 Amended Lease Agreement, the Company recorded an incremental $1.0 million right-of-use asset and corresponding lease liability during the year ended December 31, 2024.
The Company has accounted for its Needham, Massachusetts office space as an operating lease. The Company’s lease contains an option to renew and extend the lease terms and an option to terminate the lease prior to the expiration date. The Company has not included the lease extension or the termination options within the right-of-use asset and lease liability on the consolidated balance sheets as neither option is reasonably certain to be exercised. The Company’s lease includes variable non-lease components (e.g., common area maintenance, maintenance, consumables, etc.) that are not included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. The Company does not have any other operating or finance leases.
As of December 31, 2025, a right-of-use asset of $0.5 million and lease liability of $0.5 million are reflected on the consolidated balance sheets. The elements of lease expense were as follows (dollar amounts in thousands):
Year ended December 31, | ||||||||||
2025 | 2024 | 2023 | ||||||||
Lease Expense | ||||||||||
Operating lease expense | $ | 1,011 | $ | 906 | $ | 885 | ||||
Total Lease Expense | $ | 1,011 | $ | 906 | $ | 885 | ||||
Other Information - Operating Leases | ||||||||||
Operating cash flows paid for amounts included in measurement of lease liabilities | $ | 1,092 | $ | 1,081 | $ | 1,060 | ||||
December 31, 2025 | |||||||
Other Balance Sheet Information - Operating Leases | |||||||
Weighted average remaining lease term (in years) | 0.5 | ||||||
Weighted average discount rate | 9.8% | ||||||
Maturity Analysis | |||||||
2026 | 546 | ||||||
Total | $ | 546 | |||||
Less: Present value discount | (11) | ||||||
Lease Liability | $ | 535 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2021 | Mar 28, 2022 | |
| 2020 | Mar 18, 2021 | |
| 2019 | Mar 11, 2020 | |
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.