Sunshine Biopharma Inc. Leases Disclosure
Note 14 – Leases
The Company has obligations as a lessee for office space with initial non-cancellable terms in excess of one year. The Company classified the lease as an operating lease. The lease contains a renewal option for a period of five years. Because the Company is certain to exercise the renewal option, the optional period is included in determining the lease term, and associated payments under the renewal option are included in the lease payments. The Company’s lease does not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contract include fixed payments plus a variable Payment. The Company’s office space lease requires it to make variable payments for the Company’s proportionate share of building’s property taxes, insurance, and common area maintenance. These variable lease payments are not included in lease payments used to determine lease liability and are recognized as variable costs when incurred.
Amounts reported on the balance sheet as of December 31, 2025 were as follows:
| Operating lease ROU asset | $ | 778,846 | ||
| Operating Lease liability - Short-term | $ | 215,637 | ||
| Operating lease liability - Long-term | $ | 596,785 | ||
| Remaining lease term | 4 years | |||
| Discount rate | 6% | |||
Amounts disclosed for ROU assets obtained in exchange for lease obligations and reductions of ROU assets resulting from reductions of lease obligations include amounts reduced from the carrying amount of ROU assets resulting from deferred rent.
Maturities of lease liabilities under non-cancellable operating leases at December 31, 2025 are as follows:
| 2026 | $ | 215,637 | ||
| 2027 | $ | 204,428 | ||
| 2028 | $ | 193,794 | ||
| 2029 | $ | 183,705 | ||
| Thereafter | $ | 14,858 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 3, 2026 | Showing above |
| 2024 | Apr 1, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Apr 4, 2023 | |
| 2021 | Mar 21, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | May 1, 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.