NEXGEL, INC. Leases Disclosure
8. Operating Leases
The Company has an operating lease for a commercial manufacturing facility and administrative offices located in Langhorne, Pennsylvania that runs through January 2031. There are two options that can extend the lease term for five years each. The exercise of the lease options to renew is solely at the Company’s discretion.
The Company also has a sublease for office and manufacturing space in Granbury, Texas that runs through February 2028. The Company modified the lease agreement through July 2035.
The following table presents information about the amount and timing of the liability arising from the Company’s operating lease as of December 31, 2025 ($ in thousands):
| Maturity of Lease Liability | Operating Lease Liability | |||
| 2026 | $ | 363 | ||
| 2027 | 374 | |||
| 2028 | 381 | |||
| 2029 | 388 | |||
| 2030 | 395 | |||
| Thereafter | 481 | |||
| Total undiscounted operating lease payments | $ | 2,382 | ||
| Less: Imputed interest | (189 | ) | ||
| Present value of operating lease liability | $ | 2,193 | ||
| Weighted average remaining lease term | 6.9 years | |||
| Weighted average discount rate | 2.6 | % | ||
Total operating lease expense for the years ended December 31, 2025, and 2024, was $314 thousand and $287 thousand, respectively, and is recorded in cost of goods sold and selling, general, and administrative expenses in the accompanying consolidated statements of operations. The weighted average discount rate was 2.6% and 3.0% and the weighted average remaining lease term was 6.9 years and 6.4 years at December 31, 2025 and 2024, respectively.
Supplemental cash flows information related to operating leases was as follows:
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liability ($ in thousands): | ||||||||
| Operating cash flows from operating leases | $ | 262 | $ | 245 | ||||
ROU assets obtained in exchange for lease liabilities | $ | 677 | $ | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Apr 10, 2024 | |
| 2022 | Mar 28, 2023 | |
| 2021 | Mar 21, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 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.