LIXTE BIOTECHNOLOGY HOLDINGS, INC. Leases Disclosure
| 4. | Leases |
On November 21, 2025, the Company assumed as part of the Liora acquisition, a two-year lease agreement between United Kingdom Research and Innovation (the “UKRI Daresbury Lease”) as a lessor that is a UK government entity and Liora for the rental of the Daresbury Tower located on premises at UKRI Daresbury that houses the acquired machine. The lease was classified as an operating lease and has a quarterly base rent of GBP 147,596 or approximately $198,500. The lease commencement date was November 17, 2025 and has no renewal option. The Company recognized a right-of-use asset and corresponding lease liability of $1,043,437 for the UKRI Daresbury Lease.
The following tables presents net lease costs and other supplemental lease information:
| Year Ended | ||||
| December 31, 2025 | ||||
| Operating lease cost | $ | 61,695 | ||
| Operating lease – operating cash flows (fixed payments) | $ | |||
| Operating lease – operating cash flows (liability reduction) | $ | |||
| Non- Current assets – right of use assets | $ | 972,682 | ||
| Current liabilities – operating lease liabilities | $ | 595,418 | ||
| Non-current liabilities – operating lease liabilities | $ | 438,959 | ||
| Remaining lease term (in years) | 1.88 | |||
| Implicit rate used for lease calculation | 9.00 | |||
Future minimum payments under the leases at December 31, 2025 are listed in the table below (in thousands):
| Fiscal Year | Operating Leases | |||
| 2026 | $ | 595,418 | ||
| 2027 | 564,884 | |||
| Total future minimum lease payments | $ | 1,160,302 | ||
| Less: Imputed Interest | (125,925 | ) | ||
| Present value of net future minimum lease payments | $ | 1,034,377 | ||
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.