Operating Lease Obligations. Lexicon’s operating leases include leases of office space in The Woodlands, Texas and Bridgewater, New Jersey that will expire in August 2025 and January 2034, respectively. In July 2024, Lexicon entered into a new lease agreement for its existing office space in The Woodlands, Texas. The term of the lease begins September 2025, extends through January 2031 and provides for total undiscounted cash payments of $4.1 million. Operating lease right-of-use assets and associated lease liabilities are recorded in the condensed consolidated balance sheet at the lease commencement date based on the present value of future lease payments to be made over the expected lease term. As the implicit rate is not determinable in its leases, Lexicon uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. Lexicon does not apply this accounting to those leases with terms of twelve months or less.

As of March 31, 2025 and December 31, 2024, the right-of-use assets for the office space leases of $4.6 million and $4.8 million, respectively, are separately included in operating lease right-of-use-assets in the condensed consolidated balance sheet. Current liabilities relating to the leases are included in accrued liabilities in the condensed consolidated balance sheet (as further described in Note 4) and long-term operating lease liabilities of approximately $4.5 million and $4.6 million, respectively, as of March 31, 2025 and December 31, 2024 are included in other long-term liabilities in the condensed consolidated balance sheet.

During each of the three months ended March 31, 2025 and 2024, the Company incurred lease expense of $0.4 million. During each of the three months ended March 31, 2025 and 2024, the Company made cash payments for lease liabilities of $0.3 million. As of March 31, 2025 and December 31, 2024, the weighted-average remaining lease terms were 8.5 years and 8.6 years, respectively, with weighted-average discount rates of 9.7% for each year.



	(in thousands)
2025	$	871
2026	865
2027	881
2028	898
2029	914
Thereafter	3,832
Total undiscounted operating lease liability	8,261
Less: amount of lease payments representing interest	(2,697)
Present value of future lease payments	5,564
Less: short-term operating lease liability	(1,044)
Long-term operating lease liability	$	4,520

Legal Proceedings. Lexicon is from time to time party to claims and legal proceedings that arise in the normal course of its business and that it believes will not have, individually or in the aggregate, a material adverse effect on its results of operations, financial condition or liquidity.