Leases

6 Months Ended

Jun. 30, 2025

9. Leases

The Company has commitments under operating leases for laboratory, warehouse, clinical trial sites and office space. The Company also has finance leases for manufacturing space and office equipment. The Company’s leases have initial lease terms ranging from 3 years to 191 years. Certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include fixed payments.

Total rent expense under these leases was $1.3 million and $1.4 million for the three-month periods ended June 30, 2025 and 2024, respectively.

Total rent expense under these leases was $2.5 million and $2.9 million for the six-month periods ended June 30, 2025 and 2024, respectively.

There were no leases recognized during the six-month periods ended June 30, 2025 and 2024.

During the three months ended March 31, 2025, the Company determined that it was reasonably certain to exercise its early termination option on an operating lease for laboratory and office space, resulting in a remeasurement of the ROU asset and lease liability reflected in the accompanying condensed consolidated balance sheets. The components of lease cost for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows (in thousands):


	Three-Month Periods Ended June 30,
	2025		2024
Finance lease cost
Amortization of right-of-use assets	$	305	$	281
Total finance lease cost		305		281
Operating lease cost		1,113		1,437
Short-term lease cost		100		41
Total lease cost	$	1,518	$	1,759


	Six-Month Periods Ended June 30,
	2025		2024
Finance lease cost
Amortization of right-of-use assets	$	588	$	560
Total finance lease cost		588		560
Operating lease cost		2,397		2,872
Short-term lease cost		195		87
Total lease cost	$	3,180	$	3,519

Amounts reported in the condensed consolidated balance sheets for leases where the Company is the lessee as of June 30, 2025 and December 31, 2024 were as follows (in thousands):


	June 30,			December 31,
	2025			2024
Operating leases
Right-of-use assets	$	5,820		$	10,576
Capitalized lease obligations	$	6,696		$	11,576
Finance leases
Right-of-use assets	$	24,154		$	22,198
Weighted-average remaining lease term
Operating leases		3.9	years		3.6	years
Finance leases		173.4	years		173.9	years
Weighted-average discount rate
Operating leases		11.7	%		8.8	%
Finance leases		8.0	%		8.0	%

Other information related to leases for the three-month and six-month periods ended June 30, 2025 and 2024 are as follows (in thousands):


	Three-Month Periods Ended June 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,256	$	1,432


	Six-Month Periods Ended June 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,457	$	2,851

Future minimum lease payments under non-cancellable leases as of June 30, 2025 are as follows (in thousands):


	Operating Leases
2025	$	1,511
2026		2,597
2027		1,638
2028		1,432
2029		610
Total undiscounted lease payments	$	7,788
Less: Imputed interest		(1,092)
Total lease liabilities	$	6,696

MeiraGTx Holdings plc 10-Q