ARTELO BIOSCIENCES, INC. Leases Disclosure
NOTE 10 - LEASE
On May 12, 2021, the Company entered into a lease arrangement for office space in the U.S. with Beckman/Lomas LLC, an entity controlled by a close family member of a director. Effective June 1, 2022, the related party divested its interests in the property, and as such, the lease agreement no longer constitutes a related party transaction. On March 6, 2024, the Company entered into an amended agreement with the landlord to extend the lease commencing in September 2024, and effective until August 2027.
The following summarizes right-of use asset and lease information about the Company’s operating leases as of December 31, 2025:
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| Years ended |
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| December 31, |
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| 2025 |
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| 2024 |
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Lease cost |
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Operating lease cost |
| $ | 35 |
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| $ | 32 |
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Other information |
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Cash paid for operating cash flows from operating leases |
| $ | 35 |
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| $ | 30 |
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Right-of-use assets obtained in exchange for new operating lease liability |
| $ | - |
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| $ | 111 |
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Weighted-average remaining lease term — operating leases (year) |
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| 1.58 |
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| 2.58 |
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Weighted-average discount rate — operating leases |
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| 7.50% |
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| 7.50% | ||
Future minimum lease payments under the operating lease liability have non-cancellable lease payments at December 31, 2025, as follows:
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| Total |
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Year Ended December 31, |
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2026 |
| $ | 43 |
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2027 |
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| 30 |
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2028 |
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| - |
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2029 |
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| - |
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Thereafter |
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| - |
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| 73 |
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Less: Imputed interest |
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| (4 | ) |
Operating lease liabilities |
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| 69 |
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Operating lease liability - current |
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| 40 |
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Operating lease liability - non-current |
| $ | 29 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Mar 25, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.