GALECTIN THERAPEUTICS INCGALT

GALECTIN THERAPEUTICS INC Commitments Disclosure

10-KFiled Mar 31, 20262 min read
12.
Commitments and Contingencies
 
Lease Commitments
 
The Company has one operating lease for its office space which was amended effective March 1, 2022 for a term of 38 months with no residual value guarantees or material restrictive covenants. The amended lease provided for free rent for the first six and one-half months of the lease and continues the security deposit of $6,000. In addition to base rental payments included in the contractual obligations table below, the Company is responsible for our pro-rata share of the operating expenses for the building. In March 2025, the Company renewed its existing office space lease effective for twelve months at substantially the same terms. Our lease cost for the years ended December 31, 2025 and 2024 was $58,000 and $44,000, respectively, and is included in general and administrative expenses. As of December 31, 2025, the right to use lease asset consisted of $22,000 and is included in other assets. Also, at December 31, 2025, current lease liability of $22,000 is included in accrued expenses.
 
Maturity of operating lease as of December 31, 2025 in thousands:
2025
    22 
Total
    22 
Less imputed interest
       -  
Present value of lease liability
  $ 22 
 
The discount rate used in calculating the present value of the lease payments was 11%.
Legal Proceedings
 
The Company records accruals for such contingencies to the extent that the Company concludes that their occurrence is probable and the related damages are estimable. There are no pending legal proceedings.
 
Clinical Trial and Research Contingencies
 
The Company has entered into agreements with contractors for research and development activities to further its product candidates. The contracts generally may be canceled at any time by providing thirty days’ notice. The Company is involved in a dispute with a contract vendor for clinical trial management services provided outside of the United States. The contract in question is a variable contract. The Company has accrued its estimate of the amount owed to the contract vendor at December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 31, 2025
2023Mar 29, 2024
2022Mar 30, 2023
2021Mar 31, 2022
2020Mar 31, 2021
2019Mar 16, 2020
2018Mar 6, 2019
2017Mar 29, 2018
2016Mar 28, 2017
2015Mar 15, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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