Zenas BioPharma, Inc. Leases Disclosure
6.Leases
The Company has various leases for office space, which are accounted for as operating leases and generally have terms of less than two years in length, some of which have the option to renew. The Company recognizes monthly operating lease expense on a straight-line basis over the term of the lease as general and administrative expenses in
the consolidated statements of operations and comprehensive loss. Variable lease expense relates primarily to office lease common area maintenance, insurance, and property taxes, is expensed as incurred, and is excluded from the
calculation of the lease liabilities and right-of-use assets. For the years ended December 31, 2025 and 2024, the Company incurred variable lease expense of $0.3 million and $0.1 million, respectively.
Supplemental balance sheet information related to operating lease assets and liabilities was as follows (in thousands):
December 31, | ||||||
2025 | 2024 | |||||
Operating lease assets | $ | 1,354 | $ | 1,004 | ||
Operating lease liabilities | $ | 1,326 | $ | 1,003 | ||
Weighted average remaining term in years | 1.3 | 1.3 | ||||
Weighted average discount rate used to measure lease liabilities | 8.33% | 10.99% | ||||
For the years ended December 31, 2025 and 2024, the Company recorded $1.0 million and $0.9 million in operating lease expense (recorded in general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss), respectively.
The minimum lease payments under the Company’s operating leases are expected to be as follows:
Fiscal Year | | Amount | |
2026 | $ | 1,163 | |
2027 | 229 | ||
Thereafter | — | ||
Total future minimum lease payments | 1,392 | ||
Less: imputed interest | (66) | ||
Total operating lease liabilities | $ | 1,326 | |
During the years ended December 31, 2025 and 2024, the amount of right-of-use assets obtained under new operating lease arrangements was $1.5 million and $1.1 million, respectively. For years ended December 31, 2025 and 2024, the Company made $1.0 million and $0.9 million in lease payments, respectively.
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.