NOVAGOLD RESOURCES INC Leases Disclosure
NOTE 8 – LEASES
The Company leases office space under non-cancelable operating leases with original lease terms of years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional years. These optional periods have not been considered in the determination of Right-of-Use (“ROU”) assets or lease liabilities associated with these leases as management did not consider it reasonably certain it would exercise the options. Certain of our leases include payments that vary based on the Company’s level of usage and operations. These variable payments are not included within ROU assets and lease liabilities in the Consolidated Balance Sheets. Additionally, short-term leases, which have an initial term of 12 months or less, are not recorded in the Consolidated Balance Sheets.
Lease expenses are included in General and administrative expense – Office expense on the Consolidated Statements of Loss and include the following components:
|
Years ended November 30, |
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|
2025 |
2024 |
2023 |
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|
Operating lease cost |
$ | 222 | $ | 225 | $ | 232 | ||||||
|
Variable lease cost |
104 | 135 | 121 | |||||||||
|
Short-term lease cost |
5 | 6 | 5 | |||||||||
| $ | 331 | $ | 366 | $ | 358 | |||||||
Future minimum lease payments under non-cancellable operating leases as of November 30, 2025, were as follows:
|
2026 |
$ | 215 | ||
|
2027 |
226 | |||
|
2028 |
247 | |||
|
2029 |
141 | |||
|
2030 |
14 | |||
|
Thereafter |
— | |||
|
Total future minimum payments |
843 | |||
|
Less: imputed interest |
(81 | ) | ||
| $ | 762 |
Other information regarding leases includes the following:
|
Years ended November 30, |
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|
2025 |
2024 |
2023 |
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|
Cash paid for operating leases |
$ | 216 | $ | 232 | $ | 193 | ||||||
|
Variable lease cost |
104 | 135 | 121 | |||||||||
|
Short-term lease cost |
5 | 6 | 5 | |||||||||
| $ | 325 | $ | 373 | $ | 319 | |||||||
|
ROU assets obtained in exchange for lease liabilities |
$ | — | $ | — | $ | — | ||||||
|
Weighted average: |
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|
Remaining lease term (years) – operating leases |
3.6 | 4.6 | 4.8 | |||||||||
|
Discount rate – operating leases |
5.6 | % | 6.7 | % | 5.9 | % | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 22, 2026 | Showing above |
| 2024 | Jan 23, 2025 | |
| 2023 | Jan 24, 2024 | |
| 2022 | Jan 25, 2023 | |
| 2021 | Jan 26, 2022 | |
| 2020 | Jan 27, 2021 | |
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.