Xenon Pharmaceuticals Inc. Leases Disclosure
The Company has operating lease for research laboratories and office space in Burnaby, British Columbia, which expires on June 30, 2032, and two renewal options for 5-years each which were not considered in the determination of the right-of-use asset and lease liability. The Company has additional operating lease for office space in Needham, Massachusetts (“Needham Lease”), which commenced in October 2022. The Needham Lease is for a 62-month term and an option to terminate one year prior to the expiry date, which was not considered in the determination of the right-of-use asset and lease liability.
The cost components of the operating leases were as follows for the years ended December 31, 2025, 2024 and 2023:
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Year Ended December 31, |
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2025 |
|
2024 |
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2023 |
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Lease cost |
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Operating lease expense |
|
$ |
1,638 |
|
$ |
1,646 |
|
$ |
1,645 |
|
Variable lease expense(1) |
|
|
831 |
|
|
826 |
|
|
787 |
|
Lease term and discount rate |
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|
|
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|
|
|
|||
Weighted average remaining lease term (years) |
|
|
5.7 |
|
|
6.4 |
|
|
7.3 |
|
Weighted average discount rate |
|
|
3.7 |
% |
|
3.8 |
% |
|
3.9 |
% |
Future minimum lease payments as of December 31, 2025 were as follows:
Year ending December 31: |
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|
|
|
2026 |
|
$ |
1,801 |
|
2027 |
|
|
1,788 |
|
2028 |
|
|
1,087 |
|
2029 |
|
|
1,137 |
|
2030 |
|
|
1,176 |
|
2031 and thereafter |
|
|
1,822 |
|
Total future minimum lease payments |
|
$ |
8,811 |
|
Less: imputed interest |
|
|
(867 |
) |
Present value of lease liabilities |
|
$ |
7,944 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 9, 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.