In April 2024, Gyre Pharmaceuticals entered into a lease arrangement for its new corporate headquarters, an approximately 2,130 square meter office space in Beijing, PRC, which lease is set to expire in June 2027. In 2022, Gyre Pharmaceuticals secured a lease for an office space of approximately 180 square meters in Zhengzhou, PRC, which was renewed in July 2024 and is set to expire in August 2026. In November 2024, Gyre Pharmaceuticals secured a new lease for an office space of approximately 224 square meters in Shanghai, China, with the lease set to expire in December 2026. In November 2023, the Company secured a lease for its U.S. headquarters in San Diego, California, with the lease set to expire in the first quarter of 2027.

The Company also has multiple short-term leased properties used as offices and employee dormitories. The Company recorded a total of $68,000 and $89,000 short-term rent expenses during the years ended December 31, 2024 and 2023, respectively. The short-term rent expense amounts are recorded in operating expenses in the accompanying consolidated statements of operations and comprehensive income (loss).

As of December 31, 2024, the Company recorded an aggregate ROU asset of $1.8 million and an aggregate lease liability of $1.6 million in the accompanying consolidated balance sheets.

Rent expense related to operating leases was $0.7 million and $0.5 million for the years ended December 31, 2024, and 2023, respectively. Variable lease payments for the years ended December 31, 2024 and 2023 were immaterial.

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Year Ended December 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	872	$	573

The present value assumptions used in calculating the present value of the lease payments were as follows:


	Year Ended December 31,
	2024	2023
Weighted-average remaining lease term	2.3 years	2.2 years
Weighted-average discount rate	4.76%	4.78%

As of December 31, 2024, undiscounted future minimum payments under the Company’s operating leases were as follows (in thousands):


	Amount
2025	$	782
2026		631
2027		279
Total undiscounted lease payments		1,692
Less: imputed interest		(94	)
Total lease liabilities		1,598
Less: current portion of lease liabilities		(713	)
Lease liabilities, net of current portion	$	885

The Company is required to maintain security deposits of $0.3 million in connection with various leases, which amounts are included in other assets, noncurrent on the Company’s consolidated balance sheets.

As of December 31, 2024, the Company held land use rights for two land parcels in Beijing’s Shunyi District, expiring in 2053, and in Cangzhou, Hebei Province, expiring from 2067 to 2071. These parcels, with a combined area of approximately 66,559 square meters, are utilized as manufacturing facilities. As of December 31, 2024, the aggregate recorded land use rights, net assets for these parcels was $1.4 million.