Eton Pharmaceuticals, Inc. Leases Disclosure
Note 13 — Leases
In May 2025, the Company entered into an amendment to its office lease agreement to expand its office space, from 5,507 square feet, to 8,079 square feet and to renew its lease term. The amendment to the lease agreement is effective September 1, 2025 and the renewal period for the office lease is for a sixty-five month period through January 2031 and which includes tenant improvement allowances. The Company removed its existing ROU asset and liability and recorded $333 in ROU assets, $189 in tenant improvement allowances and $522 in operating lease liabilities in association with the lease extension. 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 $92, $82 and $67 for the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, cash paid for amounts included in the measurement of operating lease liabilities was $68, $58 and $88, respectively. The ROU asset non-cash lease expense was $44, $70 and $67 for the years ended December 31, 2025, 2024 and 2023, respectively, and is reflected within non-cash lease expense on the Company’s Statements of Cash Flows. As of December 31, 2025 and 2024, the average remaining lease term was 5.17 and 2.25 years, respectively and as of December 31, 2025 and 2024, the average discount rate was 11.8% and 8.6%. respectively, for each period.
The table below presents the lease-related assets and liabilities recorded on the balance sheet as of December 31, 2025 and December 31, 2024:
| December 31, | December 31, | ||||||||
| Assets | Classification | 2025 | 2024 | ||||||
| Operating lease right-of-use assets | Operating lease right-of-use assets, net | $ | 310 | $ | 175 | ||||
| Total leased assets | $ | 310 | $ | 175 | |||||
| Liabilities | |||||||||
| Operating lease liabilities, current |
| $ | 65 | $ | 76 | ||||
| Operating lease liabilities, noncurrent | Operating lease liabilities, net of current portion | 460 | 107 | ||||||
| Total operating lease liabilities | $ | 525 | $ | 183 | |||||
The Company’s future annual lease commitments as of December 31, 2025 are as indicated below:
| Total | 2026 | 2027 | 2028 | 2029 | 2030 & thereafter | |||||||||||||||||||
| Undiscounted lease payments | $ | 710 | $ | 123 | $ | 134 | $ | 138 | $ | 142 | $ | 173 | ||||||||||||
| Less: Imputed interest | (185 | ) | ||||||||||||||||||||||
| Total lease liabilities | $ | 525 | ||||||||||||||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 16, 2021 | |
| 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.