Company: CNTB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001835268-25-000058
Chunk: 24

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 the related sales occur.Contract Assets and LiabilitiesAs of September 30, 2025 and December 31, 2024, the Company had no contract assets related to the License Agreement. As of September 30, 2025 and December 31, 2024, the Company had contract liabilities related to the upfront fee received under the License Agreement of $0.2 million.

6. Commitments and Contingencies

Legal ProceedingsFrom time to time, the Company may be a party to litigation or subject to claims in the ordinary course of business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company was not a party to any material litigation and did not have contingency reserves established for any liabilities as of September 30, 2025 or December 31, 2024.

7. Leases

In February 2025, we relocated our corporate headquarters to a new location in San Diego, California. This operating lease for the new corporate headquarters is for 6,942 square feet of office space which expires on January 31, 2028. In the first quarter of 2025, we recognized an initial right-of-use (“ROU”) lease asset of $0.9 million and a lease liability of $0.9 million related to this space in San Diego, California.We have an operating lease for 25,476 square feet of laboratory and office space in Taicang, China, with a lease term that expires on April 30, 2026. We also had an operating lease for 3,628 square feet of office space in San Diego, California, with a lease term that expired on April 30, 2025.As of September 30, 2025 and December 31, 2024, the weighted average remaining lease term was 2.2 years and 1.0 year, respectively, and the weighted average discount rate used to determine the operating lease liability was 8.0% and 4.8%, respectively.During the three and nine months ended September 30, 2025, we recognized $105,000 and $351,000, respectively, of operating lease expense and we paid $106,000 and $269,000, respectively, for our operating leases.

16

During the three and nine months ended September 30, 2024, we recognized $69,000 and $213,000, respectively,