electroCore, Inc. Leases Disclosure

Note 8. Leases

 

On February 6, 2024, the Company entered into The First Amendment to Lease Agreement (the “Rockaway Amendment”) to extend its Rockaway, New Jersey lease for an additional 10 years. The Rockaway Amendment was effective May 1, 2024, and expires on July 31, 2034, with a tenant option to renew for an additional five years. The increase in the term of the lease for the existing leased property was accounted for as a lease modification, therefore, the associated operating lease right of use assets and operating lease liabilities for the existing space were remeasured as of February 6, 2024. The Rockaway Amendment also includes the expansion of leased property from 13,643 square feet to 22,557 square feet. The Company has accounted for the expansion space as an increase in lease right of use assets effective with the Rockaway Amendment commencement date of June 1, 2024.

 

In the fourth quarter of 2025, the Company discovered an error in the lease payments used in the initial calculations in conjunction with the lease modification. The error was not considered material and was corrected in the fourth quarter. This correction resulted in a decrease in operating lease right-of-assets of $1.0 million, decrease in operating lease liabilities, current of $0.1 million, decrease in operating lease liabilities, noncurrent of $1.3 million and decrease in rent expense of $0.4 million.

 

 

ELECTROCORE, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements — Continued

 

For the years ended December 31, 2025 and 2024, the Company recognized lease expense of $205,000 and $535,000, respectively. This expense does not include non-lease components associated with the lease agreements as the Company elected not to include such charges as part of the lease expense.

 

Supplemental Balance Sheet Information for Operating Leases:

 Schedule of Operating Leases

		December 31,
(in thousands)		2025				2024
Operating leases:
Operating lease right of use assets		$	2,565			$	3,739
Operating lease liabilities:
Current portion of operating lease liabilities			375				361
Noncurrent operating lease liabilities			2,421				3,775
Total operating lease liabilities		$	2,796			$	4,136
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows		$	369			$	234
Weighted average remaining lease term (in years)			13.4				14.5
Weighted average discount rate			13.5	%			13.5	%

 

Future minimum lease payments under non-cancellable operating leases as of December 31, 2025:

 Schedule of Future Lease Payments

Financial year (in thousands)
2026		$	383
2027			397
2028			412
2029			417
2030			423
2031 and thereafter			4,479
Total future minimum lease payments			6,511
Less: Amounts representing interest			(3,715	)
Total		$	2,796