Glucotrack, Inc. Leases Disclosure
6. Lease Agreement
On February 19, 2024, the Company entered into a three-year lease agreement with Tapsak Enterprises LLC dba Virginia Analytical for premises in the Front Royal, Virginia area, commencing March 1, 2024 and ending February 28, 2027, at a monthly rent of $2.5, with a $2.5 security deposit refundable at the end of the initial term. The Company has the option to renew the lease for two additional three-year periods at fair market rental rates, subject to advance notice, but only the initial lease term was considered for accounting purposes as renewal was not deemed reasonably certain. In accordance with ASC 842, the Company recognized a right-of-use asset and corresponding lease liability of $79 at commencement, with the lease liability measured as the present value of future lease payments discounted using the Company’s estimated incremental borrowing rate.
Operating lease:
| December 31, 2025 | December 31, 2024 | |||||||
| Operating right-of-use asset | $ | 33 | $ | 59 | ||||
| Current operating lease liability | $ | 28 | $ | 26 | ||||
| Non-Current operating lease liability | $ | 5 | $ | 33 | ||||
Maturity analysis of the Company’s lease liability:
| December 31, 2025 | December 31, 2024 | |||||||
| Less than one year | $ | 30 | $ | 30 | ||||
| Between 1-2 years | 5 | 30 | ||||||
| More than 2 years | 5 | |||||||
| Total operating lease payments | $ | 35 | $ | 65 | ||||
| Less: imputed interest | $ | 2 | $ | 6 | ||||
| Present value of lease liabilities | $ | 33 | $ | 59 | ||||
Additional information on lease
The following is a summary of the weighted average remaining lease terms and discount rate for the lease:
| December 31, 2025 | December 31, 2024 | |||||||
| Lease term (years) | 1.17 | 2.17 | ||||||
| Weighted average discount rate | 9.03 | % | 9.03 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Apr 13, 2021 | |
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.