Note 6. Leases:

 

The Company’s former corporate headquarters were located in Baltimore, Maryland, which included a lease for office space. This lease began in November 2021 and ended April 2024. The lease was not renewed after April 2024. In April 2024, the Company moved to a virtual office model and does not have a physical office space as of December 31, 2024

 

The Company had leased an office in Tampa, Florida, for its finance and general operations, which began in March 2022 for 37 months. On December 1, 2023, the Company formally terminated the lease with the landlord. There was a remaining deposit due from the landlord to the Company of $0.005 million, which is recorded in accounts receivable in the accompanying balance sheet as of December 31, 2023. As of December 31, 2024, the amount was collected.

 

The Company also leased a jet (Note 5) from a related party, which terminated on March 31, 2023.

 

Variable lease costs

 

Variable lease costs primarily include utilities, property taxes, and other operating costs that are passed on from the lessor. Variable lease costs in 2023 related to the aircraft include usage expenses, which includes pilot expenses, jet fuel and general flight expenses.

 

The components of lease expense were as follows:

  

  2024   2024 
   Year Ended December 31, 
  2024   2024 
Lease costs        
Operating lease costs  $5,092   $200,283 
Variable lease costs   -    311,126 
Total lease cost  $5,092   $511,409 

 

 

MIRA PHARMACEUTICALS, INC.

NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

Supplemental cash flow information related to leases were as follows:

 

  2024   2023 
   Year Ended December 31, 
  2024   2023 
Other lease information        
Cash paid for amounts included in the measurement of lease liabilities        
Operating cash flows from operating leases  $5,092   $511,409 

 

Historical Timeline

Fiscal YearFiled
2024Mar 28, 2025Showing above
2023Apr 1, 2024

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.