Right-of-use assets

12 Months Ended

Dec. 31, 2025

Note 8 Right-of-use assets

Accounting policy

Lease contracts recognition

Lease contracts, as defined by IFRS 16 “Leases”, are recorded in the statement of consolidated financial position, which leads to the recognition of:

•

an asset representing a right of use of the asset leased during the lease term of the contract “right-of-use”; and

•

a liability related to the payment obligation “lease debt”.

Measurement of the right-of use asset

At the commencement date, the right-of-use asset is measured at cost and comprises:

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the amount of the initial measurement of the lease liability, to which is added, if applicable, any lease payments made at or before the commencement date, less any lease incentives received;

•

where relevant, any initial direct costs incurred by the lessee for the conclusion of the contract. These are incremental costs which would not have been incurred if the contract had not been concluded; and

•

estimated costs for restoration of the leased asset according to the terms of the contract.

Following the initial recognition, the right-of-use asset must be depreciated over the shorter of the useful life of the underlying assets or the lease term for the rental component.

Measurement of the lease liability

At the commencement date, the lease liability is recognized for an amount equal to the present value of the lease payments over the lease term.

Amounts involved in the measurement of the lease liability are:

•

fixed payments (including in-substance fixed payments meaning that even if they are variable in form, they are in-substance unavoidable);

•

variable lease payments that depend on an index or a rate, initially measured using the index or the rate in force at the lease commencement date;

•

amounts expected to be payable by the lessee under residual value guarantees;

•

payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease; and

•

the exercise price of a purchase option if we are reasonably certain to exercise that option.

The lease liability is subsequently measured based on a process similar to the amortized cost method using the discount rate:

•

the liability is increased by the accrued interests resulting from the discounting of the lease liability, at the beginning of the lease period; and

•

payments made are deducted.

The interest cost for the period as well as variable payments, not taken into account in the initial measurement of the lease liability and incurred over the relevant period are recognized as costs.

In addition, the lease liability may be remeasured in the following situations:

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the occurrence of a change in the lease term or a reassessment of the reasonably certain nature (or not) of the exercise of an option,

•

a remeasurement linked to residual value guarantees,

•

the occurrence of an adjustment to the rates and indices according to which the rents are calculated when rent adjustments occur.

Main contracts applicable

Based on its analysis, the Group has identified lease contracts according to the standard concerning office buildings, laboratories, production facilities and storage facilities.

In accordance with IFRS 16, the lease term is determined as the non-cancellable period of a lease, together with (i) periods covered by an option to extend the lease if we are reasonably certain to exercise that option, and (ii) periods covered by an option to terminate the lease if we are reasonably certain not to exercise that option.

The discount rate used to calculate the lease debt is determined, for each portfolio of assets, according to the incremental borrowing rate at the contract date.

The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

The rental charges relating to short term and low value lease remains classified as leases expenses in operating expenses and are immaterial.

Details of Right-of-use assets

The breakdown of right-of-use assets is as follows:


	Building lease			Office and laboratory equipment			Total
	$ in thousands
Net book value as of January 1, 2023		33,666			10,608			44,275
Additions		1,678			98			1,776
Disposal		(102	)		-			(102	)
Depreciation & impairment expense		(5,081	)		(3,318	)		(8,399	)
Translation adjustments		442			69			510
Net book value as of December 31, 2023		30,602			7,457			38,060
Gross value at end of period		51,863			18,022			69,885
Accumulated depreciation and impairment at end of period		(21,261	)		(10,565	)		(31,825	)

Net book value as of January 1, 2024		30,602			7,457			38,060
Additions		422			19			398
Disposal		-			(42	)		-
Depreciation & impairment expense		(4,770	)		(3,015	)		(7,785	)
Translation adjustments		(660	)		(44	)		(704	)
Net book value as of December 31, 2024		25,593			4,375			29,968
Gross value at end of period		50,913			17,684			68,597
Accumulated depreciation and impairment at end of period		(25,320	)		(13,309	)		(38,629	)

Net book value as of January 1, 2025		25,593			4,375			29,968
Disposal		(3	)		(0	)		(3	)
Depreciation & impairment expense		(4,991	)		(2,518	)		(7,509	)
Translation adjustments		1,158			44			1,202
Net book value as of December 31, 2025		21,757			1,901			23,658
Gross value at end of period		53,751			18,332			72,083
Accumulated depreciation at end of period		(31,994	)		(16,431	)		(48,425	)

Entity-wide disclosures:

In 2025, approximately $8.3 million of our right-of-use assets related to France, while approximately $15.4 million related to the United States.

In 2024, approximately $10.0 million of our right-of-use assets related to France, while approximately $19.9 million related to the United States.

In 2023, approximately $14.0 million of our right-of-use assets related to France, while approximately $24.0 million related to the United States.