9. LEASES

 

The Company primarily enters into lease arrangements for office, laboratory space, and copiers. A summary of supplemental lease information is as follows:

 

   December 31, 
   2025   2024 
Weighted average remaining lease term - operating leases (in years)   1.2    2.1 
Weighted average remaining lease term - finance leases (in years)   2.1    3.1 
Weighted average discount rate – operating leases   7.0%   7.0%
Weighted average discount rate – finance leases   7.0%   7.0%
Operating cash flows from operating leases  $113,259   $177,081 
Operating cash flows from finance leases  $780   $1,053 

 

A summary of the Company’s lease assets and liabilities are as follows:

 

   December 31, 
   2025   2024 
Operating lease right-of-use asset  $113,289   $209,788 
Finance leases in Property and Equipment   5,689    10,421 
Total lease assets  $118,978   $220,209 
Current portion of operating lease liability  $100,000   $113,260 
Current portion of finance lease liability included in accrued expenses   4,807    4,807 
Noncurrent operating lease liabilities   20,211    108,989 
Noncurrent finance lease liabilities   4,540    8,567 
Total lease liabilities  $129,558   $235,623 

 

The following table reconciles the undiscounted lease liabilities to the total lease liabilities recognized on the consolidated balance sheet as of December 31, 2025:

 

Year  Operating Lease   Finance
Lease
 
2026  $100,000   $4,807 
2027   25,000    4,807 
2027   
-
    400 
Total future lease payments   125,000    10,014 
Less: Imputed interest   4,789    667 
Present value of lease liability  $120,211   $9,347 

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 31, 2025
2023Mar 28, 2024
2022Mar 20, 2023

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.