Grace Therapeutics, Inc. Leases Disclosure
8. Leases
The Company has historically entered into lease arrangements for its research and development and quality control laboratory facility located in Sherbrooke, Québec. In March 2022, the Company renewed the lease agreement effective April 1, 2022, resulting in a commitment of $556 over a 24-month base lease term with an option to renew for an additional 48-month term. In April 2023, the Company elected not to renew the additional 48-month option to renew, and terminated the lease on March 31, 2024.
Supplemental balance sheet information related to leases was as follows:
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|
March 31, 2024 |
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March 31, 2023 |
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|
$ |
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|
$ |
|
||
Operating lease right of use asset |
|
|
— |
|
|
|
463 |
|
Operating lease liability, current |
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|
— |
|
|
|
75 |
|
Operating lease liability, long-term |
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|
— |
|
|
|
410 |
|
Total operating lease liability |
|
|
— |
|
|
|
485 |
|
Supplemental lease expense related to leases is as follows:
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Year ended March 31, 2024 |
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Year ended March 31, 2023 |
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|
$ |
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|
$ |
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||
Operating lease cost |
|
|
93 |
|
|
|
206 |
|
Total lease expense |
|
|
93 |
|
|
|
206 |
|
The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating lease for the year ended March 31, 2024:
Operating cash flows for operating lease |
|
$ |
93 |
|
Weighted-average remaining lease term (in years) |
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|
|
|
Weighted-average discount rate |
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|
4.3 |
% |
As the Company's lease does not provide an implicit rate, the Company utilized its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. As of March 31, 2024, there were no future minimum lease payments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Jun 21, 2024 | Showing above |
| 2023 | Jun 23, 2023 | |
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.