Fulcrum Therapeutics, Inc. (NASDAQ: FULC) recently released its SEC report for the year 2022. Notably, the lease expenses reported by the company for its property at 26 Landsdowne Street amounted to approximately $1.9 million for the year. The lease for the space, which covers 5.5 years starting from December 2021, included an additional variable lease expense of approximately $1 million.
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In November 2021, Fulcrum Therapeutics entered into another lease agreement at 125 Sidney Street, Cambridge, Massachusetts.
The lease for the 12,196 square feet property commenced in November 2021 and will end on March 31, 2024. According to the report, the total commitment for the initial term of this lease is $1.7 million and includes escalating rent payments.
The company adopted the Accounting Standards Update (ASU) 2016-02 accounting standard.
which saw right-of-use assets and lease liabilities recorded on the balance sheet for both properties. For the 26 Landsdowne Street lease, a discount rate of 6.1% was calculated, while a discount rate of 4.2% was calculated for the 125 Sidney Street lease.
As a result of the adoption of ASU 2016-02, the operating lease expenses for the year ended December 31, 2022, were $1.9 million for the 26 Landsdowne Street lease and $0.7 million for the 125 Sidney Street lease.
The variable lease expense for the former property was $1.0 million, while there was no variable lease expense for the latter property.
Over the next five years, Fulcrum Therapeutics is expected to make total minimum lease payments for the 26 Landsdowne Street lease amounting to $14,684 million, while the total minimum lease payments for the 125 Sidney Street lease will amount to $1,046 million.
Furthermore, the company has not yet indicated whether it will exercise options to extend the lease terms for both properties.
The lease expenses reported in the SEC filing highlight the company’s commitment to maintaining its presence in prime, strategic locations.
Additionally, the adoption of ASU 2016-02 accounting standards may provide greater transparency for investors and potentially help the company make more informed decisions regarding future lease commitments. It remains to be seen how these expenses will impact Fulcrum Therapeutics’ overall financial performance in the coming years.
Income Statement
Financials in millions USD. Fiscal year is January – December. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|
| 0 | Revenue | 6.34 | 19.16 | 8.82 | 0 | 0 | 0 |
| 1 | Revenue Growth (YoY) | -66.90% | 117.19% | – | – | – | – |
| 2 | Gross Profit | 6.34 | 19.16 | 8.82 | 0 | 0 | 0 |
| 3 | Selling, General & Admin | 41.69 | 30.52 | 21.39 | 13.15 | 8.31 | 4.5 |
| 4 | Research & Development | 76.78 | 69.7 | 59.04 | 71.07 | 25.18 | 18.49 |
| 5 | Other Operating Expenses | 0.43 | 0 | 0 | 0 | 0 | 0 |
| 6 | Operating Expenses | 118.9 | 100.22 | 80.43 | 84.22 | 33.5 | 22.99 |
| 7 | Operating Income | -112.56 | -81.05 | -71.61 | -84.22 | -33.5 | -22.99 |
| 8 | Other Expense / Income | -2.69 | -0.21 | -0.79 | -1.54 | -0.91 | -0.03 |
| 9 | Pretax Income | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 10 | Net Income | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 11 | Preferred Dividends | 0 | 0 | 0 | 7.13 | 6.56 | 2.41 |
| 12 | Net Income Common | -109.87 | -80.85 | -70.82 | -89.81 | -39.15 | -25.37 |
| 13 | Shares Outstanding (Basic) | 45 | 35 | 25 | 11 | 1 | 1 |
| 14 | Shares Outstanding (Diluted) | 45 | 35 | 25 | 11 | 1 | 1 |
| 15 | Shares Change | 27.23% | 39.47% | 129.53% | 778.76% | 76.79% | – |
| 16 | EPS (Basic) | -2.44 | -2.29 | -2.79 | -8.13 | -31.14 | -35.68 |
| 17 | EPS (Diluted) | -2.44 | -2.29 | -2.79 | -8.13 | -31.14 | -35.68 |
| 18 | Free Cash Flow Per Share | -2.20 | -2.27 | -2.17 | -3.65 | -25.09 | -30.92 |
| 19 | Gross Margin | 100.00% | 100.00% | 100.00% | – | – | – |
| 20 | Operating Margin | -1774.85% | -422.97% | -811.64% | – | – | – |
| 21 | Profit Margin | -1732.43% | -421.89% | -802.66% | – | – | – |
| 22 | Free Cash Flow Margin | -1561.23% | -418.47% | -623.34% | – | – | – |
| 23 | EBITDA | -107.46 | -78.33 | -68.44 | -80.62 | -31.24 | -22.25 |
| 24 | EBITDA Margin | -1694.37% | -408.77% | -775.70% | – | – | – |
| 25 | Depreciation & Amortization | 2.41 | 2.52 | 2.38 | 2.05 | 1.35 | 0.72 |
| 26 | EBIT | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 27 | EBIT Margin | -1732.43% | -421.89% | -802.66% | – | – | – |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!