Company: DARE
Filing Date: 2025-04-24
Form Type: ARS
Source: 0001401914-25-000018
Chunk: 309

Company: Dare Bioscience, Inc.
Filing Date: 2025-04-24
Form: ARS
Chunk 309
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 amounts are included in operating activities in the consolidated statements of cash flows. At December 31, 2024, operating leases had a weighted average remaining lease term of 2.42 years and a weighted average interest rate of 10.50%. At December 31, 2024, future minimum lease payments under the Company's operating leases are as follows: Year ending December 31, 2025 $ 660,000 2026 680,000 2027 130,000 Total future minimum lease payments 1,470,000 Less: accreted interest 167,000 Total operating lease liabilities $ 1,303,000 12. ROYALTY INTEREST FINANCING On December 21, 2023, the Company entered into a royalty interest financing agreement, or the Royalty Interest Agreement, with United in Endeavour, LLC, or UiE, under which UiE acquired a portion of the Company's royalty interest in XACIATO. The Company received $5.0 million from UiE when the parties entered into the Royalty Interest Agreement (the "Initial Investment"), and between January 1, 2024 and December 31, 2026, the Company may, in its sole discretion, but subject to XOMA's prior written consent (see Note 13, Royalty Purchase Agreements), F-29

elect to receive three additional payments (each a "Supplemental Investment") from UiE of up to an aggregate of $7.0 million, for a total of up to $12.0 million. Under the Royalty Interest Agreement, the Company agreed to make the following payments to UiE, until such time when UiE has received aggregate payments equaling a 12% internal rate of return (the “IRR”) on the Initial Investment and each Supplemental Investment, if any (the "Hard Cap"): (i) from December 21, 2023 through December 31, 2025, 50% of the amount of royalty payments remaining after all amounts that are due and payable and actually paid by the Company to any licensor or sublicensee on the royalty payments generated and received by the Company on net sales of XACIATO by Organon have been deducted (the “Net Royalty Payments”), (ii) from January 1, 2026 through December 31, 2029, 75% of the Net Royalty Payments, and (iii) from December 21, 2023 through