Aditxt, Inc. Leases Disclosure

NOTE 9 – LEASES

 

Our lease agreements generally do not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. We used the incremental borrowing rate on December 31, 2025 and December 31, 2024 for all leases that commenced prior to that date. In determining this rate, which is used to determine the present value of future lease payments, we estimate the rate of interest we would pay on a collateralized basis, with similar payment terms as the lease and in a similar economic environment.

 

Our corporate headquarters is located in Mountain View, California where we lease approximately 5,810 square feet of laboratory and office space. On March 20, 2025, the Company entered an amendment to the Mountain View lease, extending the term through March 31, 2028. As of December 31, 2025, the Company is current on this lease.

 

We also lease approximately 25,000 square feet in Richmond, Virginia. The lease expires on August 31, 2026, subject to extension. As of December 31, 2025 the Company is in default on the Richmond lease in the amount of $159,375 due to an outstanding security deposit.

  

LS Biotech Eight Default

 

On May 10, 2024, the Company received written notice (the “2024 Default Notice”) from LS Biotech Eight, LLC (the “Landlord”), the Landlord of the Company’s CLIA-certified, CAP accredited, high complexity immune monitoring center in Richmond, Virginia, that the Company was in violation of its obligation to (i) pay Base Rent (as defined in the Lease) and Additional Rent (as defined in the Lease) in the amount of $431,182 in the aggregate, together with administrative charges and interest, as well as (ii) replenish the Security Deposit (as defined in the Lease) in the amount of $159,375, all as required under that certain Lease Agreement dated as of May 4, 2021 by and between the Landlord and the Company (the “Lease”). Pursuant to the Notice, the Landlord has demanded that a payment of $590,557 plus administrative charges and interest, which shall accrue at the Default Rate (as defined in the Lease) be made no later than May 17, 2024. As of December 31, 2025, the Company has made the payment of $431,182 and is in default on the lease in the amount of $159,375 due to an outstanding security deposit.

The Company is working with the Landlord to come to an amicable resolution. However, no assurance can be given that the parties will reach an amicable resolution on a timely basis, on favorable terms, or at all.

 

Lease Costs

 

		Year Ended December 31, 2025				Year Ended December 31, 2024
Components of total lease costs:
Operating lease expense		$	1,158,494			$	1,233,777
Total lease costs		$	1,158,494			$	1,233,777

 

Lease Positions as of December 31, 2025 and December 31, 2024

 

ROU lease assets and lease liabilities for our operating leases are recorded on the balance sheet as follows:

 

		December 31, 2025				December 31, 2024
Assets
Right of use asset – long term		$	1,204,526			$	1,225,781
Total right of use asset		$	1,204,526			$	1,225,781
Liabilities
Operating lease liabilities – short term		$	808,179			$	683,352
Operating lease liabilities – long term			342,904				436,354
Total lease liability		$	1,151,083			$	1,119,706

 

Lease Terms and Discount Rate as of December 31, 2025

 

Weighted average remaining lease term (in years) – operating leases			1.91
Weighted average discount rate – operating leases			8.00	%

 

Maturities of leases are as follows:

 

2026		$	801,760
2027			389,165
2028			98,005
Total lease payments		$	1,288,930
Less imputed interest			(137,847	)
Less current portion			(808,179	)
Total maturities, due beyond one year		$	342,904