PALVELLA THERAPEUTICS, INC. Leases Disclosure
Note 11. Operating Lease Commitments
The Company entered into an operating lease arrangement that commenced on October 1, 2025 with unrelated parties for office space located in Wayne, PA. The lease expires on September 30, 2028, and the Company has the option of extending the lease for two additional one-year terms. The Company did not include options to extend its lease terms as part of its right-of-use asset and lease liabilities. The lease is subject to additional variable charges, including common area maintenance and property insurance. Given the variable nature of such costs, they are recognized as expense as incurred. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term.
The Company has recorded right-of-use assets of $0.6 million and lease liabilities of $0.6 million for its operating lease on the consolidated balance sheet as of December 31, 2025.
The following are the components of lease cost recognized within general and administrative expense on the consolidated statements of operations and comprehensive loss for the year ended December 31, 2025:
|
|
December 31, |
|
|
Operating lease cost |
|
$ |
61 |
|
Variable lease cost |
|
|
12 |
|
Short-term lease cost |
|
|
53 |
|
As of December 31, 2025, the weighted average remaining lease life and weighted average discount rate were as follows:
|
|
December 31, |
|
|
Operating leases |
|
|
|
|
Weighted average remaining lease term (years) |
|
|
2.75 |
|
Weighted average discount rate |
|
|
11.58 |
% |
As of December 31, 2025, the future minimum rental payments due under non-cancelable leases are as follows:
|
|
Operating |
|
|
Fiscal years ending December 31, |
|
|
|
|
2026 |
|
$ |
262 |
|
2027 |
|
|
269 |
|
2028 |
|
|
205 |
|
2029 |
|
|
- |
|
2030 |
|
|
- |
|
Thereafter |
|
|
- |
|
Total gross minimum lease payments |
|
|
736 |
|
Less: imputed interest |
|
|
(103 |
) |
Subtotal |
|
|
633 |
|
Less: current portion |
|
|
(202 |
) |
Long-term portion of lease liability |
|
$ |
431 |
|
As of December 31, 2025, the Company had no leases that had not yet commenced. There were no material leases during the year ended December 31, 2024.
Want the next PALVELLA THERAPEUTICS, INC. leases disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment PALVELLA THERAPEUTICS, INC.'s next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 2, 2022 | |
| 2020 | Mar 31, 2021 | |
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.