Longeveron Inc. Leases Disclosure
6. Leases
The Company records a right-of-use operating lease asset and a lease liability related to its operating leases (there are no finance leases). The Company’s corporate office lease expires in March 2027. As of December 31, 2024, the operating lease asset and operating lease liability were approximately $0.9 million and $1.4 million, respectively. As of December 31, 2023, the operating lease asset and operating lease liability were approximately $1.2 million and $2.0 million, respectively.
Future minimum payments under the operating leases as of December 31, 2024 are as follows (in thousands):
Year Ending December 31, |
|
Amount |
|
|
2025 |
|
|
682 |
|
2026 |
|
|
682 |
|
2027 |
|
|
169 |
|
Total |
|
|
1,533 |
|
Less interest (5% discount rate) |
|
|
(86 |
) |
Present value of lease liability |
|
$ |
1,447 |
|
During the years ended December 31, 2024 and 2023, the Company incurred approximately $0.8 million and $0.9 million, respectively, of total lease costs that are included in the general and administrative expenses in the statements of operations.
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.