Journey Medical Corp Leases Disclosure
NOTE 10. OPERATING LEASE OBLIGATIONS
The Company leases 3,801 square feet of office space in Scottsdale, Arizona. In July 2024, the Company amended the lease to extend the lease term for an additional 25 months at an annual rate of approximately $0.1 million. The amended lease commenced on February 1, 2025 and expires on February 28, 2027.
The Company recorded rent expense as follows (dollars in thousands):
| For the Years Ended December 31, | |||||
| 2025 | | 2024 | |||
Operating lease cost | $ | 99 | $ | 98 | ||
Variable lease cost | 7 | 5 | ||||
Total lease cost | $ | 106 | $ | 103 | ||
The following table summarizes quantitative information about the Company’s operating leases (dollars in thousands):
| For the Years Ended December 31, |
| |||||
| 2025 | | 2024 |
| |||
Cash paid for amounts included in the measurement of lease liabilities | $ | 94 | $ | 102 | |||
Weighted-average remaining lease term - operating leases |
| 1.2 |
| 2.2 | |||
Weighted-average discount rate - operating leases |
| 7.35 | % |
| 7.35 | % | |
As of December 31, 2025, future payments of operating lease liabilities are as follows:
| |||
For the year ended December 31, | | ($’s in thousands) | |
2026 | $ | 105 | |
2027 | 18 | ||
Total lease payments | 123 | ||
Less: present value discount | (4) | ||
Total operating lease liabilities | $ | 119 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 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.