Company: CNTB
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001835268-25-000035
Chunk: 23

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 initial ROU lease asset of $0.9 million and a lease liability of $0.9 million related to this space in San Diego, California.As of March 31, 2025, 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. In addition, 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. As of March 31, 2025 and December 31, 2024, the weighted average remaining lease term was 2.6 years and 1.0 year, respectively, and the weighted average discount rate used to determine the operating lease liability was 7.9% and 4.8%, respectively.Annual future minimum lease payments as of March 31, 2025 are as follows (in thousands):2025 (remainder of year)$307 2026371 2027354 202830 Thereafter— Total future minimum lease payments1,062 Less: amount representing interest(122)Total lease liabilities$940 Rent expense under all operating leases totaled $0.1 million for both the three months ended March 31, 2025 and 2024. During both the three months ended March 31, 2025 and 2024, we paid $0.1 million for our operating leases.

8. Reorganization

Executive Officer DeparturesDuring the second and third quarters of 2024, we implemented changes to our executive leadership structure. In connection with these changes, we provided three executive officers with one-time severance payments upon termination, continued benefits for a specified period of time, and certain stock option modifications. The total expense for these activities was $3.2 million, $2.0 million of which was primarily for cash severance and $1.2 million of which was for non-cash, share-based compensation expense. During the year ended December 31, 2024, we recognized $3.2 million of the total expense, $1.8 million of which was included in general and administrative expense, and $1.4 million of which was included in research and development expense. As of March 31, 2025, we have paid the $2.0 million of cash severance 

15

charges. We have accounted for