Lantern Pharma Inc. Leases Disclosure
Note 5. Leases
The following provides balance sheet information related to leases as of December 31, 2025 and 2024:
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Operating lease, right-of-use asset, net | $ | 75,595 | $ | 239,985 | ||||
| Liabilities | ||||||||
| Current portion of operating lease liabilities | $ | 78,539 | $ | 190,814 | ||||
| Operating lease liabilities, net of current portion | 52,843 | |||||||
| Total operating lease liabilities | $ | 78,539 | $ | 243,657 | ||||
At December 31, 2025, the future estimated minimum lease payments under non-cancelable operating leases are as follows:
| Total minimum lease payments to be paid in 2026 | $ | 81,000 | ||
| Less amount representing interest | (2,461 | ) | ||
| Present value of future minimum lease payments | 78,539 | |||
| Less current portion of operating lease liabilities | (78,539 | ) | ||
| Operating lease liabilities, net of current portion | $ |
At December 31, 2025, the Company has a non-cancellable operating lease for office space in Atlanta, Georgia that requires monthly payments of $6,750 through December 31, 2026. The Company had a similar lease with the same landlord at December 31, 2024, which was terminated and replaced with the existing lease during 2025. The lease is subject to automatic renewal on a month-to-month basis unless the Company provides three-months written notice to the landlord. The exercise of lease renewal options is at the Company’s sole discretion and is assessed as to whether to include any renewals in the lease term at inception.
At December 31, 2024, the Company had a non-cancellable operating lease for office space in Dallas, Texas, which required monthly payments of approximately $11,200 through November 2025. Effective December 1, 2025, the Company entered into a new 12-month lease for office space in Dallas, which is accounted for as a short-term lease and excluded from operating lease liabilities and right-of-use assets.
The following table provides a reconciliation for the Company’s right of use assets and lease liabilities:
| Right-of-Use Asset | Operating Lease Liability | |||||||
| Balance at January 1, 2024 | $ | 228,295 | $ | 234,471 | ||||
| Early termination of operating leases | (163,722 | ) | (163,722 | |||||
| Operating right-of-use asset acquired through operating lease liability | 348,623 | 348,623 | ||||||
| Amortizations | (173,211 | ) | (175,715 | ) | ||||
| Balance at December 31, 2024 | 239,985 | 243,657 | ||||||
| Early termination of operating leases | (52,844 | ) | (52,844 | ) | ||||
| Operating right-of-use asset acquired through operating lease liability | 78,351 | 78,351 | ||||||
| Amortizations | (189,897 | ) | (190,625 | ) | ||||
| Balance at December 31, 2025 | $ | 75,595 | $ | 78,539 | ||||
Other supplemental information related to operating leases is as follows:
As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Weighted average remaining term of operating leases (in years) | 1.00 | 1.30 | ||||||
| Weighted average discount rate of operating leases | 6.75 | % | 9.50 | % | ||||
The Company also leased additional office space in Dallas, Texas under month-to-month lease arrangements during the years ended December 31, 2025 and 2024. In April 2023, the Company entered into a two-year lease for material storage and handling. In October 2025, the Company extended this lease to continue through September 2026. The lease is cancellable with 45-days’ written notice. Under these short-term leases, the Company elected the short-term lease measurement and recognition exemption under ASC 842 and recorded rent expense as incurred.
The components of lease expense were approximately as follows for the years ended December 31, 2025 and 2024:
| 2025 | 2024 | |||||||
| Operating lease cost | $ | 205,000 | $ | 191,000 | ||||
| Short-term lease cost | 24,000 | 19,000 | ||||||
| $ | 229,000 | $ | 210,000 | |||||
During the years ended December 31, 2025 and 2024, cash used in operating activities associated with its operating leases was approximately $205,000 and $194,000, respectively.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 18, 2024 | |
| 2022 | Mar 20, 2023 | |
| 2021 | Mar 10, 2022 | |
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.