PULSE BIOSCIENCES, INC. Leases Disclosure
8. Leases
Operating Leases
The Company leases office and laboratory facilities for its principal operations in Hayward, California, and office facilities for its corporate headquarters in Miami, Florida. 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. 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. The Company conducted evaluations of its contracts and determined it has only operating leases. Variable lease expense for these leases primarily consists of common area maintenance and other operating costs.
Total lease costs and cash paid for the Company's leases were as follows (in thousands):
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash paid for operating lease liabilities | $ | 2,150 | $ | 1,938 | |||
| Operating lease cost | 1,933 | 1,786 | |||||
| Variable lease cost | 626 | 667 | |||||
The weighted-average remaining lease term and discount rates for the Company’s leases were as follows:
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Lease term (in years) | 3.9 | 4.9 | |||||
| Discount rate | 9.8% | 9.8% | |||||
The maturities of the Company’s lease liabilities as of December 31, 2025 were as follows (in thousands):
| Fiscal Year | Amount | ||
| 2026 | $ | 2,221 | |
| 2027 | 2,296 | ||
| 2028 | 2,377 | ||
| 2029 | 2,077 | ||
| 2030 | 73 | ||
| Total lease payments | 9,044 | ||
| Less imputed interest | |||
| Total lease liabilities | $ | 7,530 | |
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.