Note 7 – Right-of-Use Assets and Liabilities

 

The Company leases its facility in Irvine, California under an operating lease which it amended in November 2021 to extend the lease term an additional 60 months through September 30, 2027. The lease rate at the date of the amendment was $30,206 per month with escalating payments adjusting annually. In connection with the lease, the Company is obligated to pay $7,254 monthly for operating expenses for building repairs and maintenance. The Company has no other operating or financing leases with terms greater than 12 months.

 

Lease liabilities were determined using the Company’s estimated incremental borrowing rate of 3.95% to estimate the present value of the remaining monthly lease payments.

 

Our operating lease cost is as follows (in thousands):

 

  

For the Year Ended

December 31, 2024

 
Operating lease cost  $389 

 

Supplemental cash flow information related to our operating lease is as follows:

 

(Dollars in thousands) 

For the Year Ended

December 31, 2024

 
Operating cash flow information:     
Cash paid for amounts included in the measurement of lease liabilities  $387 

 

Remaining lease term and discount rate for our operating lease is as follows:

 

   December 31, 2024 
Remaining lease term   2.7 years 
Discount rate   3.95%

 

Maturity of our lease liabilities by fiscal year for our operating lease is as follows:

 

(In thousands)    
Year ended December 31, 2025   399 
Year ended December 31, 2026   411 
Year ended December 31, 2027   315 
Total  $1,125 
Less: Imputed interest   (61)
Present value of our lease liability  $1,064 

 

 

ENVVENO MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

Historical Timeline

Fiscal YearFiled
2024Feb 28, 2025Showing above
2019Mar 18, 2020

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.