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Operating Lease Right-of-Use (ROU) Asset, Net

We determine if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our operating lease relates to a property lease for our laboratory and corporate offices which expires in January 2027. BioCardia’s lease agreement does not contain any material residual guarantees or material restrictive covenants.

ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Our lease does not provide an implicit rate. We used an adjusted historical incremental borrowing rate, based on the information available at the approximate lease commencement date, to determine the present value of lease payments. Variable rent expense is made up of expenses for common area maintenance and shared utilities and were not included in the determination of the present value of lease payments. We have no finance leases.

Our lease expense was $120,000 for both the three months ended June 30, 2025 and 2024, and $241,000 for both the six months ended June 30, 2025 and 2024. The cash paid under the operating lease for base rent was $124,000 and $249,000 for the three and six months ended June 30, 2025, respectively, and was $121,000 and $242,000 for the three and six months ended June 30, 2024, respectively. On June 30, 2025, the weighted average remaining lease term was 1.59 years, and the weighted average discount rate was 10.74%.

Future minimum lease payments under the operating lease as of June 30, 2025 were as follows (in thousands):