Eton Pharmaceuticals, Inc. Leases Disclosure
Note 12 — Leases
In June 2024, the Company renewed its office lease for a two-year period through March 2027 and recorded $219 in ROU assets and $219 in operating lease liabilities in association with the lease extension.
The Company’s operating lease cost as presented as G&A in the Statements of Operations was $82, $67 and $82 for the years ended December 31, 2024, 2023 and 2022, respectively. For the years ended December 31, 2024, 2023 and 2022, cash paid for amounts included in the measurement of operating lease liabilities was $58, $88 and $88, respectively. The ROU asset non-cash lease expense was $70, $67 and $62 for the years ended December 31, 2024, 2023 and 2022, respectively, and is reflected within non-cash lease expense on the Company’s Statements of Cash Flows. As of December 31, 2024 and 2023, the weighted average remaining lease term was 2.25 and 1.25 years, respectively and as of December 31, 2024 and 2023, the weighted average discount rate was 8.6% for each period.
The table below presents the lease-related assets and liabilities recorded on the balance sheet as of December 31, 2024:
| December 31, | December 31, | ||||||||
| Assets | Classification | 2024 | 2023 | ||||||
| Operating lease right-of-use assets | Operating lease right-of-use assets, net | $ | 175 | $ | 92 | ||||
| Total leased assets | $ | 175 | $ | 92 | |||||
| Liabilities | |||||||||
| Operating lease liabilities, current |
| $ | 76 | $ | 53 | ||||
| Operating lease liabilities, noncurrent | Operating lease liabilities, net of current portion | 107 | 22 | ||||||
| Total operating lease liabilities | $ | 183 | $ | 75 | |||||
The Company’s future annual lease commitments as of December 31, 2024 are as indicated below:
| Total | 2025 | 2026 | 2027 | |||||||||||||
| Undiscounted lease payments | $ | 202 | $ | 89 | $ | 90 | $ | 23 | ||||||||
| Less: Imputed interest | (19 | ) | ||||||||||||||
| Total lease liabilities | $ | 183 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 18, 2025 | Showing above |
| 2019 | Mar 5, 2020 | |
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.