NRX Pharmaceuticals, Inc. Leases Disclosure
Note 6. Leases
The Company has operating leases for healthcare clinics in Naples, Fort Myers, and West Palm Beach, Florida:
| ● | Naples Lease (Related Party): The Company leases its Naples clinic from Dura Properties, LLC, an entity owned and controlled by Dura’s former sole member prior to the acquisition. Following the acquisition on September 8, 2025, the former member became a director and minority shareholder of the Company. Right-of-use (ROU) assets and operating lease liabilities was measured under ASC 805 as if the leases were new at the acquisition date. The amended lease commenced on September 8, 2025 and expires on December 31, 2027. It is non-cancelable and requires monthly base rent of $6 thousand (subject to 3% annual escalations), plus $2 thousand in common area maintenance charges, and $1 thousand in taxes. |
| ● | Fort Myers Lease (Third Party): The Company amended a lease for its Fort Myers clinic on September 8, 2025, with a commencement date of September 8, 2025, and an expiration date of November 30, 2026. Right-of-use (ROU) assets and operating lease liabilities were measured under ASC 805 as if the leases were new at the acquisition date. The amended lease is non-cancellable and requires monthly base rent of $5 thousand in the first year, plus $2 thousand in common area maintenance charges, subject to 3% annual escalations |
| ● | West Palm Beach Lease (Third Party): On November 14, 2025, the Company entered into a sublease agreement with Third Party of office space located at West Palm Beach, Florida. The sublease commenced on December 1, 2025 and expires on April 5, 2028. The sublease provides for fixed annual rent of approximately $151.0 thousand in the first lease year, subject to contractual escalations, and includes a five‑month rent abatement at commencement. The Company is also responsible for its proportionate share of operating expenses and other additional rent in accordance with the sublease terms. |
The components of lease expense included in the Company’s statement of operations were as follows (in thousands):
| For the year ended | |||||
| December 31, | |||||
| Expense Classification | 2025 | ||||
| Operating lease expense: | |||||
| Amortization of ROU asset | Selling, general and administrative | $ | 40 | ||
| Accretion of operating lease liability | Selling, general and administrative | 5 | |||
| Amortization of ROU asset - related party | Selling, general and administrative | 33 | |||
| Accretion of operating lease liability - related party | Selling, general and administrative | 31 | |||
| Total operating lease expense | $ | 109 | |||
Other information related to leases is as follows:
| As of December 31, | ||||
| 2025 | ||||
| Weighted-average remaining lease term: | ||||
| Operating leases (in years) | 2.03 | |||
| Weighted-average discount rate: | ||||
| Operating leases | 7.62 | % | ||
The future minimum lease payments required under leases as of December 31, 2025 were as follows (in thousands):
| Fiscal Year | ||||
| 2026 | $ | 354 | ||
| 2027 | 277 | |||
| 2028 | 53 | |||
| Total | 684 | |||
| Less: imputed interest | (53 | ) | ||
| Lease liability | $ | 631 |
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.