Company: DARE
Filing Date: 2025-04-24
Form Type: ARS
Source: 0001401914-25-000018
Chunk: 308

Company: Dare Bioscience, Inc.
Filing Date: 2025-04-24
Form: ARS
Chunk 308
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 lease for three years such that the term now expires on October 31, 2027, which resulted in additional operating lease liabilities and ROU assets of approximately $0.4 million in March 2024. MBI, a wholly-owned subsidiary the Company acquired in November 2019, leases general office and laboratory space in Lexington, Massachusetts. The lease commenced on November 1, 2023 for a term of three years, expiring on December 31, 2026, and resulted in an increase in operating lease liabilities and ROU assets of approximately $0.4 million. Under the terms of each lease, the lessee pays base annual rent (subject to an annual fixed percentage increase), plus property taxes, and other normal and necessary expenses, such as utilities, repairs, and maintenance. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. The leases do not require material variable lease payments, residual value guarantees or restrictive covenants. The leases do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. The Company uses an incremental borrowing rate consisting of the current prime rate plus 200 basis points for operating leases. The depreciable lives of operating leases and leasehold improvements are limited by the expected lease term. At December 31, 2024, the Company reported operating lease ROU assets of approximately $1.2 million in other non-current assets, approximately $0.5 million in current portion of lease liabilities, and approximately $0.8 million in lease liabilities long-term in the consolidated balance sheets. Total operating lease costs were approximately $0.8 million and $0.6 million for the years ended December 31, 2024 and 2023, respectively. Operating lease costs consist of monthly lease payments expense, common area maintenance and other repair and maintenance costs and are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. Cash paid for amounts included in the measurement of operating lease liabilities was approximately $0.6 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively, and these