Medicus Pharma Ltd. Leases Disclosure
4. Leases
As of December 31, 2025, the Company had one operating lease for its corporate office that commenced in 2024, for which the Company recorded a right-of-use asset and lease liability as of the commencement date. The Company's lease does not contain a purchase option. Where the Company's lease contains an option to extend the lease term, the extended lease term is only included in the measurement of the lease when it is reasonably certain to remain in the lease beyond the non-cancellable term. The Company's lease also contains variable lease costs, which pertain to common area maintenance and other operating charges, that are expensed as incurred.
Balance sheet information related to the Company's lease is presented below:
| Year Ended December 31, | ||||||
| 2025 | 2024 | |||||
| Operating lease | ||||||
| Operating lease right-of-use assets | $ | 170,733 | $ | 268,571 | ||
| Operating lease liabilities - current | 145,456 | 116,323 | ||||
| Operating lease liabilities - non-current | 60,139 | 205,945 | ||||
Other information related to leases is presented below:
| Year Ended December 31, | ||||||
| 2025 | 2024 | |||||
| Lease cost | ||||||
| Operating lease cost | $ | 123,777 | 123,777 | |||
| Other information | ||||||
| Operating cash flows used in operating leases | (142,612 | ) | (70,080 | ) | ||
| Remaining lease term (in years) | 1.50 | 2.42 | ||||
| Discount rate | 10% | 10% | ||||
As of December 31, 2025, the annual future minimum lease payments of the Company's operating lease liabilities were as follows:
| Year ending December 31, | |||
| 2026 | 146,530 | ||
| 2027 | 74,348 | ||
| Total future minimum lease payments, undiscounted | 220,878 | ||
| Present value discount | (15,283 | ) | |
| Total lease liability | $ | 205,595 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 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.