Cingulate Inc. Leases Disclosure

(14) Leases

 

In May 2025, the Company executed a lease agreement to renew the office space for its headquarters in Kansas City, Kansas. The lease has a 60-month term that commenced on June 1, 2025 with total rent of $33,145 per month over the lease term.

 

In April 2020, the Company entered into a 60-month lease agreement for office furniture under a lease classified as a financing lease as title of the furniture transfers to the Company at the end of the lease term. Monthly lease payments are $1,491. The leased furniture is amortized on a straight-line basis over 7 years. The imputed interest rate relating to the lease obligation is 6.12% and the maturity date was in March 2025.

 

The components of lease cost for the years ended December 31, 2025 and 2024 were as follows:

Summary of Components of Lease Cost  

		2025				2024
Operating lease cost		$	366,089			$	302,786
Finance lease cost:
Amortization of right-of-use assets			2,747				10,990
Interest on lease liabilities			45				842
Total finance lease cost			2,792				11,832
Total lease cost		$	368,881			$	314,618

 

 

Amounts reported in the consolidated balance sheets as of December 31, 2025 and 2024 were as follows:

Summary of Lease Reported in Consolidated Balance Sheets  

		2025				2024
Operating Leases:
Operating lease right-of-use assets		$	1,339,086			$	99,011
Operating lease liability, current			238,864				130,662
Operating lease liabilities, net of current			1,100,222				-
Total operating lease liabilities			1,339,086				130,662
Finance leases:
Property and equipment			76,928				76,928
Accumulated amortization			(76,928	)			(75,759	)
Property and equipment, net			-				1,169
Current installments of obligations under
Finance lease liability, current			-				4,430
Total finance lease liabilities		$	-			$	4,430

 

Other information relating to leases as of December 31, 2025 and 2024 was as follows:

Summary of Other Information Relating to Leases  

Supplemental cash flow information:		2025				2024
Reductions to ROU assets resulting from reductions to lease obligations:
Operating leases			224,485				267,886
Finance leases			2,747				10,990
Weighted average remaining lease term:
Operating leases			53 months				5 months
Finance leases			-				3 months
Weighted average discount rate:
Operating leases			13.25	%			11.76	%
Finance leases			-				6.12	%

 

Maturities of lease liabilities under noncancellable leases as of December 31, 2025 are as follows:

Summary of Maturity of Lease Liabilities  

		Operating				Finance
		leases				leases
2026			397,740				-
2027			397,740				-
2028			397,740				-
2029			397,740				-
Thereafter			165,725				-
Total undiscounted lease payments			1,756,685				-
Less imputed interest			(417,599	)			-
Total lease liabilities		$	1,339,086			$	-