Company: VCYT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001384101-25-000060
Chunk: 70

Company: VERACYTE, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 $1.6 million and $1.5 million included in long-term assets as of March 31, 2025 and December 31, 2024, respectively, restricted from withdrawal and held by banks in the form of collateral for irrevocable standby letters of credit held as security for the leases.

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Table of ContentsVERACYTE, INC.Notes to Financial Statements(unaudited)

The Company determined its operating lease liabilities using payments through their current expiration dates and a weighted average discount rate of 11.4% based on the rate that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment. Operating lease liabilities along with the associated right-of-use assets are disclosed in the accompanying condensed consolidated balance sheets.  After the adoption of ASC 842, Leases, or ASC 842, the Company classified its deferred rent for tenant improvements with its operating lease right-of-use assets on the consolidated balance sheets. Future minimum lease payments under non-cancelable operating leases as of March 31, 2025 are as follows (in thousands of dollars): Year Ending December 31,AmountsRemainder of 2025$6,148 20265,780 20278,388 20288,561 20298,246 Thereafter56,099 Total future minimum lease payments93,222 Less: amount representing interest42,721 Present value of future lease payments50,501 Less: short-term lease liabilities7,409 Long-term lease liabilities$43,092  The Company recognizes operating lease expense on a straight-line basis over the non-cancelable lease period. The following table summarizes operating lease expense and cash paid for amounts included in the measurement of lease liabilities (in thousands of dollars): Three Months Ended March 31,20252024Operating lease expense$2,254 $1,543 Cash paid for amounts included in the measurement of lease liabilities$1,922 $1,629 ContingenciesFrom time to time, the Company may be involved in various legal proceedings and claims arising in the ordinary course of business. Although the outcomes of such matters cannot be predicted with certainty, the Company believes there is no litigation pending that could have, either individually or in the aggregate, a material adverse impact on the Company's consolidated financial statements.On May 1, 2025, the Company filed a complaint in federal court in the Eastern District of Texas alleging that Sonic