ELUTIA INC. Leases Disclosure
Note 8. Leases
As of December 31, 2025, the Company leases one administrative facility under a non-cancelable operating lease arrangement that expires in June 2028 and one administrative, research and production facility under a non-cancelable operating lease arrangement that expires in January 2036 with early termination options in May 2029 and May 2033.
The following is a summary of the Company’s ROU assets and operating lease liabilities as of December 31, 2025 and 2024 (in thousands):
December 31, | |||||||
Classification on the Balance Sheet | 2025 | | 2024 | ||||
Assets | |||||||
Operating leases assets | $ | 2,426 | $ | 154 | |||
| |||||||
Liabilities | |||||||
Operating leases current liabilities | 355 | 145 | |||||
Operating leases non-current liabilities | Long-term operating lease liabilities | 3,587 | 16 | ||||
Total lease liabilities | $ | 3,942 | $ | 161 | |||
Weighted average remaining lease term | 9.5 | 0.9 | |||||
Weighted average discount rate | 12.1 | % | 13.1 | % | |||
For the years ended December 31, 2025 and 2024, the Company recognized operating lease costs of approximately $0.5 million and $0.2 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities are included in operating cash flows and were approximately $0.1 million and $0.2 million for the years ended December 31, 2025 and 2024, respectively.
The table below reconciles the Company’s future cash obligations to the operating lease liabilities recorded on the balance sheet as of December 31, 2025 (in thousands):
Years ending December 31, | | | |
2026 | $ | 202 | |
2027 |
| 806 | |
2028 | 759 | ||
2029 | 711 | ||
2030 | 732 | ||
Thereafter | 4,076 | ||
Total minimum lease payments | 7,286 | ||
Less: amount of lease payments representing interest | (3,344) | ||
Present value of future minimum lease payments | 3,942 | ||
Less: current operating lease liabilities | (355) | ||
Long-term operating lease liabilities | $ | 3,587 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 23, 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.