IMMUCELL CORP /DE/ Leases Disclosure
11. OPERATING LEASES
We have non-cancelable operating lease agreements for certain office and warehouse space through January of 2043. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Our lease agreements include variable components such as common area maintenance charges and real estate taxes. Variable lease payments based on consumption and leases with terms less than twelve months are insignificant and expensed as incurred.
The following table presents our lease assets and liabilities by their balance sheet classification:
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Lease assets | ||||||||
| Operating lease right-of-use asset | $ | 4,379,628 | $ | 4,560,679 | ||||
| Lease liabilities | ||||||||
| Current portion of operating lease liability(1) | $ | 85,489 | $ | 432,072 | ||||
| Operating lease liability, net of current portion | $ | 4,009,788 | $ | 4,129,102 | ||||
(1) During the year ended December 31, 2025, we made a balloon payment to our landlord in accordance with the terms of the lease agreement, resulting in the significant decrease in the current portion of our operating lease liability as of December 31, 2025.
The following tables describe our lease costs and other lease information:
| During the Years | ||||||||
| Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease cost | ||||||||
| Fixed lease cost | $ | 404,529 | $ | 427,519 | ||||
| Variable lease cost | 74,186 | 66,523 | ||||||
| Total lease cost | $ | 478,715 | $ | 494,042 | ||||
| Weighted average remaining lease term (in years) | 17.1 | 18.1 | ||||||
| Weighted average discount rate(1) | 6.56 | % | 6.60 | % | ||||
(1) We assess the incremental borrowing rate at the commencement date and any subsequent modification dates.
The following table presents supplemental cash and non-cash information:
| During the Years | ||||||||
| Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid for operating lease liabilities | $ | 689,375 | $ | 577,260 | ||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | $ | 103,115 | |||||
Future lease payments required under non-cancelable operating leases in effect as of December 31, 2025 were as follows:
| During the years ending December 31, | Amount | |||
| 2026 | $ | 346,874 | ||
| 2027 | 353,812 | |||
| 2028 | 360,885 | |||
| 2029 | 368,397 | |||
| 2030 | 375,465 | |||
| Thereafter | 5,157,324 | |||
| Total lease payments | 6,962,757 | |||
| Less: imputed interest | (2,867,480 | ) | ||
| Total operating liabilities | $ | 4,095,277 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
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.