Company: ERAS
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0000950170-25-042682
Chunk: 314

Company: Erasca, Inc.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 6
Chunk 314
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 F-25

In connection with committing to the plan to sublease the first floor in June 2024, the Company reassessed its asset groups for testing long-lived assets for impairment and determined the first floor operating lease assets and related property and equipment represented an asset group separate from the entity wide asset group. The Company concluded that the carrying value of the first floor asset group was not recoverable as it exceeded the future net undiscounted cash flows that are expected to be generated from the use and eventual disposition of the assets within the asset group. The Company determined the fair value of the first floor asset group based on the income approach using a discounted cash flow model. The cash flows used in the model were discounted using a rate of 13.5%. Based on this analysis, the Company recognized a noncash impairment charge of $4.7 million, including $2.4 million for the operating lease assets and $2.3 million for the leasehold improvements and furniture, of which $3.0 million was recorded to research and development expense and $1.7 million was recorded to general and administrative expense, during the year ended December 31, 2024. This represented a Level 3 nonrecurring fair value measurement. Calculating the fair value of the asset group involves significant estimates and assumptions, including projected future cash flows and a discount rate. Changes in the estimates and assumptions used could materially affect the amount of impairment loss recognized in the period the asset group is considered impaired. Future minimum lease payments and sublease receipts under operating leases as of December 31, 2024 are as follows (in thousands): 

        Operating Lease Payments

        Operating Sublease Receipts

        Year ending December 31,

        2025
        $
        9,024

        $
        2,582

        2026
         
        9,170

        1,409

        2027
         
        9,199

        1,406

        2028
         
        9,277

        1,448

        2029
         
        9,572

        1,237

        Thereafter
         
        25,526

        —

        Total lease payments or sublease receipts
        $
        71,768

        $
        8,082

        Less: Amount representing interest
         
        (19,879
        )

        Operating lease liabilities