Company: CNTB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001835268-25-000058
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Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
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 square feet of office space which expires on January 31, 2028. In the first quarter of 2025, we recognized an initial right-of-use (“ROU”) lease asset of $0.9 million and a lease liability of $0.9 million related to this space in San Diego, California.We have an operating lease for 25,476 square feet of laboratory and office space in Taicang, China, with a lease term that expires on April 30, 2026. We also had an operating lease for 3,628 square feet of office space in San Diego, California, with a lease term that expired on April 30, 2025.As of September 30, 2025 and December 31, 2024, the weighted average remaining lease term was 2.2 years and 1.0 year, respectively, and the weighted average discount rate used to determine the operating lease liability was 8.0% and 4.8%, respectively.During the three and nine months ended September 30, 2025, we recognized $105,000 and $351,000, respectively, of operating lease expense and we paid $106,000 and $269,000, respectively, for our operating leases.

16

During the three and nine months ended September 30, 2024, we recognized $69,000 and $213,000, respectively, of operating lease expense and we paid $76,000 and $225,000, respectively, for our operating leases.Annual future minimum lease payments as of September 30, 2025 are as follows (in thousands):2025 (remainder of year)$105 2026371 2027354 202830 Thereafter— Total future minimum lease payments860 Less: amount representing interest(79)Total lease liabilities$781 

8. Reorganization

Executive Officer DeparturesDuring the second and third quarters of 2024, we implemented changes to our executive leadership structure. In connection with these changes, we provided three executive officers with one-time severance payments upon termination, continued benefits for a specified period of time, and certain stock option modifications. The total expense for these activities was $3.2 million, $2.0 million of which was primarily for cash severance and $1.2 million of which was for non-cash, share-based compensation expense. During the three months ended September 30, 2024, we recognized $1.8 million of