Neuphoria Therapeutics Inc. Leases Disclosure
Note 5. Leases
In June 2021, the Company entered into a 5-year lease agreement (the “Greenhill Lease”) for its Australian facility located in Dulwich, South Australia. The initial term of the lease expires in May 2026.
The Greenhill Lease requires monthly lease payments that are subject to annual increases of 3% throughout the lease term. The lease also includes two renewal options, at the election of the Company, to renew or extend the lease for additional terms of one year each. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options. Variable lease expense for the premises primarily consists of common area maintenance and other operating costs.
The following table summarizes the Company’s recognition of the Greenhill lease:
|
|
June 30, |
|
|
|
|
2025 |
|
|
2026 |
|
$ |
119,593 |
|
Less: effect of discounting |
|
|
(3,279 |
) |
Present value of lease liability |
|
$ |
116,314 |
|
|
|
|
|
|
Current operating lease liabilities |
|
$ |
116,314 |
|
Non-current operating lease liabilities |
|
|
|
|
Total |
|
$ |
116,314 |
|
The discount rate associated with the Greenhill lease is 3.5% and the weighted average remaining lease term is approximately one year.
The following table summarizes the effect of lease costs in the Company's consolidated statements of operations and other comprehensive income (loss):
|
|
Year Ended June 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Operating lease costs |
|
|
|
|
|
|
||
Research and development |
|
$ |
45,902 |
|
|
$ |
61,110 |
|
General and administrative |
|
|
50,859 |
|
|
|
68,296 |
|
Total |
|
$ |
96,761 |
|
|
$ |
129,406 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 29, 2025 | Showing above |
| 2024 | Sep 30, 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.