Entera Bio Ltd. Leases Disclosure
| 1) |
The Company leases office and research and development space under several agreements. The annual lease consideration is a total of $196 and is linked to the Israeli consumer price index. In April 2023, the Company extended the period of the lease agreement for an additional five years, expiring on June 30, 2028, with two options for early termination by the Company subject to a notice period.
The Company recorded the related asset and obligation at the present value of lease payments over the expected terms, discounted using the lessee’s incremental borrowing rate, which was 13.84%. The Company lease agreements do not provide a readily determinable implicit rate. Therefore, the Company estimated the incremental borrowing rate to discount the lease payments based on information available at lease commencement.
As of December 31, 2025, the Company provided bank guarantees of approximately $60, in the aggregate, to secure the fulfillment of its obligations under the lease agreements. |
| 2) |
The Company has entered into operating lease agreements for vehicles used by its employees. The lease periods are generally for three years, and the payments are linked to the Israeli consumer price index. To secure the terms of the lease agreement, the Company has made certain deposits to the leasing company, representing approximately three months of lease payments. The annual lease consideration is a total of $44.
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Year ended December 31, 2025
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Year ended December 31, 2024
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Operating lease cost
|
240
|
198
|
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Year ended December 31, 2025
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Year ended December 31, 2024
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Operating cash flows from operating leases
|
240
|
198
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December 31, 2025
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December 31, 2024
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Operating Leases
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Operating lease right-of-use assets
|
465
|
275
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||||||
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Current lease liabilities
|
230
|
170
|
||||||
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Non-current lease liabilities
|
260
|
102
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Total lease liabilities
|
490
|
272
|
||||||
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Weighted-average remaining lease term (in years)
|
2.43
|
1.54
|
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Weighted-average discount rate
|
14
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%
|
14
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%
|
||||
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2026
|
238
|
|||
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2027
|
222
|
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2028
|
107
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|||
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Total future minimum lease payments
|
567
|
|||
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Less: interest
|
(77
|
)
|
||
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Present value of operating lease liabilities
|
490
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 8, 2022 | |
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.