Dogwood Therapeutics, Inc. Leases Disclosure
8. Leases
In connection with the Combination, the Company acquired a right-of-use asset which was revalued at the date of the Combination. Pharmagesic has obtained the right to control the use of office premises for a period of time through a lease arrangement. The lease arrangement was negotiated on an individual basis and contains a wide range of different terms and conditions including lease payments and remaining lease terms to August 31, 2028. The lease arrangement does not impose any covenants other than the security interests in the leased asset that is held by the lessor. The Company maintains a security deposit totaling $19,037 as of December 31, 2025.
There were no additions or extensions to the right-of-use asset during the year ended December 31, 2025 or during the period from the Combination date to December 31, 2024. Total cash outflows for the lease were $121,351 for the year ended December 31, 2025 and were $31,939 for the period from the Combination date to December 31, 2024. These costs were included in net cash used in operating activities.
The following table presents the components of the lease costs included in general and administrative expenses in the statements of operations for the years ended December 31, 2025 and 2024:
| Year Ended | |||||
December 31, | December 31, | |||||
Component of lease cost | | 2025 | | 2024 | ||
Operating lease cost | $ | 66,115 | $ | 17,772 | ||
Variable lease cost | 50,727 | 14,167 | ||||
Total lease expense | $ | 116,842 | $ | 31,939 | ||
Future minimum annual commitments under the operating leases are as follows:
Year ending December 31: | |||
2026 | $ | 67,062 | |
2027 | 68,252 | ||
2028 | 43,915 | ||
Total lease payments | 179,229 | ||
Less: amount representing interest | (16,625) | ||
Present value of net minimum lease payments | $ | 162,604 | |
Less: current obligations |
| (56,841) | |
Long-term obligations under leases | $ | 105,763 |
Other information related to this operating lease and the calculation of related right-of-use assets and operating lease liabilities consists of the following:
| 2025 | | 2024 | |||
Cash paid for amounts included in the measurement of lease liabilities | $ | 121,351 | $ | 31,939 | ||
Weighted-average remaining lease term (in years) - operating leases | 2.7 | 3.7 | ||||
Weighted-average discount rate - operating leases | 7.82% | 7.82% | ||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
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.