Company: PHAT
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034183
Chunk: 277

Company: Phathom Pharmaceuticals, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 277
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2 million, in the first 24-month period following the launch of the final product. The Company incurred $0.3 million of expenses under the agreement during each of the years ended December 31, 2024 and 2023. As of December 31, 2024, €1.8 million, or approximately $1.9 million, remains of the minimum purchase obligation.   

F-16

Contingencies

In the event the Company becomes subject to claims or suits arising in the ordinary course of business, the Company would accrue a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. 

4. Lease CommitmentsAs of December 31, 2024, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with weighted average remaining lease terms of 0.3 years and 0.7 years, respectively. All operating leases contain an option to extend the term for one additional five-year period, which was not considered in the determination of the right-of-use asset or lease liability as the Company did not consider it reasonably certain that it would exercise such options.     The total rent expense for each of the years ended December 31, 2024 and 2023 was approximately $1.1 million. Total short-term lease costs relating to leased vehicles was approximately $8.8 million for the year ended December 31, 2024, and was not material for the year ended December 31, 2023.  As of December 31, 2024, the future minimum annual lease payments under the operating leases were as follows (in thousands): 

        Year ending December 31:

        2025
         
        $
        513

        Total minimum lease payments

        513

        Less: amount representing interest

        (12
        )

        Present value of operating lease liabilities

        501

        Less: operating lease liabilities, current

        (501
        )

        Operating lease liabilities, non-current
         
        $
        —

        Weighted-average remaining lease term (in years)

        0.61

        Weighted-average incremental borrowing rate

        8.28
        %
       
       Operating cash flows for the years ended December 31, 2024 and 2023 included cash payments for operating leases of $1.0 million and $1.1 million, respectively, of which