Company: RPID
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001380106-25-000200
Chunk: 355

Company: RAPID MICRO BIOSYSTEMS, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 355
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 and recorded in variable lease expense in the period incurred.The Company uses its incremental borrowing rate which is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount in a similar economic environment to determine the present value of lease payments as the Company’s leases do not have a readily determinable implicit discount rate. Judgment is applied in assessing factors such as Company specific credit risk, lease term, nature, and quality of the underlying collateral, currency, and economic environment in determining the incremental borrowing rate to apply to each lease. Although the Company has entered into new debt arrangements with different interest rates, such changes do not impact the incremental borrowing rates applied to existing leases, as those rates are established at lease commencement and are not subsequently updated unless a lease is modified or remeasured.The Company leases office and manufacturing space under operating lease agreements that have initial terms ranging from approximately 8 to 10 years. The Company leases furniture under a financing lease agreement that has an initial term of approximately 8 years. The furniture financing lease agreement is immaterial to the Company's condensed consolidated financial statements. Some leases include one or more options to renew, generally at the Company's sole discretion, with renewal terms that can extend the lease term by up to 5 years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. Options to extend a lease are included in the lease term when it is reasonably certain that the Company will exercise the option. Options to terminate a lease are excluded from the lease term when it is reasonably certain that the Company will not exercise the option. The Company’s leases generally do not contain any material restrictive covenants or residual value guarantees.Supplemental cash flow information related to leases is as follows (in thousands):Nine Months Ended September 30,20252024Cash paid for amounts included in measurement of lease liabilities:Operating cash outflows - payments on operating leases$1,022 $997 Operating cash outflows - payments on financing leases$35 $27 Financing cash outflows - payments on financing leases$22 $29 

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Supplemental balance sheet information related to the Company’s operating and financing leases is as follows (in thousands):September 30, 2025December 31, 2024Operating Leases:Operating lease assets$4,239 $4,998 Operating lease liabilities, short-term$1,226 $1,167