Protalix BioTherapeutics, Inc. Leases Disclosure
NOTE 7 - OPERATING LEASES
The Company is a party to several lease agreements for its facilities that included varying lease periods and . The Company is currently in the second option period for each of the three leases, which periods are not uniform. In September 2025, the Company amended all of the facility leases, collectively, to provide that the third option period for each lease will end on December 31, 2031 and will be associated with a uniform rent increase equal to 7.5%. Thereafter, each lease will extend automatically, on an individual basis, for up to four additional five-year periods unless the Company provides the lessor with six months’ advance notice that it does not intend that any individual option extension become effective. Each option to renew a lease in each of the four
option periods shall include a rent increase equal to 5% of the rent payable for the applicable previous option period. Prior to the amendment, the options to extend the leases were associated with increases of either 7.5% or 10%. The Company expects to exercise the final option in future periods. As of December 31, 2025, the Company provided bank guarantees of approximately $586,000, in the aggregate, to secure the fulfillment of its obligations under the lease agreements. The Company adjusted the operating lease right of use assets by $3.1 million reflecting the amount of remeasurement of the lease liability using a new discount rate at the amendment date.
The Company has entered into several three-year leases for vehicles which are regularly amended as new vehicles are leased.
The following table sets forth data regarding the Company’s operating leases for the years ended December 31, 2023, 2024, and 2025:
Year Ended December 31, | ||||||||||
(U.S. dollars in thousands) | | 2023 | | 2024 | 2025 | |||||
Operating lease costs | $ | 1,471 | $ | 1,639 | $ | 1,815 | ||||
Cash paid for amounts included in the measurement of lease liabilities | 1,484 | 1,634 | 1,804 | |||||||
Weighted average remaining lease term (in years) | 6.8 | 6.0 | 22.6 | |||||||
Weighted average discount rate | 12.8 | % | 12.8 | % | 13.4 | % | ||||
The following table sets forth a maturity analysis of the Company’s operating lease liabilities as of December 31, 2025:
(U.S. dollars in thousands) | | December 31, 2025 | |
First year | $ | 1,384 | |
Second year | $ | 1,192 | |
Third year | $ | 1,104 | |
Fourth year | $ | 1,058 | |
Fifth year and thereafter | $ | 22,445 | |
Total undiscounted cash flows | $ | 27,183 | |
Less: imputed interest | $ | 18,862 | |
Present value of operating lease liabilities | $ | 8,321 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Mar 12, 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.