NEPHROS INC Leases Disclosure
Note 9 – Leases
The Company has operating leases for corporate offices, and office equipment. The leases have remaining lease terms of 2 to 3 years.
Lease cost, as presented below, includes costs associated with leases for which right-of-use (“ROU”) assets have been recognized as well as short-term leases.
The components of total lease costs were as follows (in thousands):
Year ended December 31, 2025 | Year ended December 31, 2024 | |||||||
| Operating lease cost | $ | 351 | $ | 447 | ||||
| Finance lease cost: | ||||||||
| Amortization of right-of-use assets | 5 | 5 | ||||||
| Interest on lease liabilities | 1 | 2 | ||||||
| Total finance lease cost | 6 | 7 | ||||||
| Variable lease cost | 105 | 108 | ||||||
| Total lease cost | $ | 462 | $ | 562 | ||||
Supplemental cash flow information related to leases was as follows (in thousands):
Year ended December 31, 2025 | Year ended December 31, 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 435 | $ | 562 | ||||
| Financing cash flows from finance leases | $ | 5 | $ | 5 | ||||
Supplemental balance sheet information related to leases was as follows (in thousands except years):
| December 31, 2025 | December 31, 2024 | |||||||
| Operating lease | $ | 1,004 | $ | 1,355 | ||||
| Finance lease | $ | 17 | $ | 22 | ||||
| Current portion of | $ | 386 | $ | 343 | ||||
| 661 | 1,046 | |||||||
| Total operating lease liabilities | $ | 1,047 | $ | 1,389 | ||||
| Current portion of | $ | 5 | $ | 5 | ||||
| 11 | 17 | |||||||
| Total finance lease liabilities | $ | 16 | $ | 22 | ||||
| Weighted average remaining lease term | ||||||||
| Operating leases | 2.6 years | 3.6 years | ||||||
| Finance leases | 2.8 years | 3.8 years | ||||||
| Weighted average discount rate | ||||||||
| Operating leases | 8.0 | % | 8.0 | % | ||||
| Finance leases | 8.0 | % | 8.0 | % | ||||
As of December 31, 2025, maturities of lease liabilities were as follows (in thousands):
| Operating Leases | Finance Leases | |||||||
| 2026 | $ | 450 | $ | 7 | ||||
| 2027 | 450 | 7 | ||||||
| 2028 | 251 | 5 | ||||||
| Total future minimum lease payments | 1,151 | 19 | ||||||
| Less imputed interest | (104 | ) | (3 | ) | ||||
| Total | $ | 1,047 | $ | 16 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 12, 2019 | |
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.