Scinai Immunotherapeutics Ltd. Leases Disclosure
NOTE 6:- LEASES
The Company has several operating lease agreements that include leases of offices and cars that are used to maintain the Company’s ongoing operation. The leases of the offices and cars are for a period of 10 and 3 years, respectively. Some of these lease agreements include extension options. The Company does not include in the lease term the exercise of extension options unless it is reasonably certain at lease commencement that the extension options will be exercised.
Supplemental balance sheet information related to operating leases is as follows:
Year ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| Office | ||||||||
| Weighted average remaining lease term (in years) | 5 | 6 | ||||||
| Weighted average discount rate | 8 | % | 8 | % | ||||
| Cars | ||||||||
| Weighted average remaining lease term (in years) | 1.7 | 2 | ||||||
| Weighted average discount rate | 18%-23 | % | 18 | % | ||||
Minimum lease payments for the Company’s right of use assets over the remaining lease periods as of December 31, 2022, are as follows:
| Office | Cars | |||||||
| 2023 | $ | 322 | $ | 74 | ||||
| 2024 | 322 | 44 | ||||||
| 2025 | 322 | 12 | ||||||
| 2026 | 322 | |||||||
| Thereafter | 322 | |||||||
| Total undiscounted lease payments | 1,610 | 130 | ||||||
| Less - adjustment to discounted lease payments | (260 | ) | (20 | ) | ||||
| Present value of lease liabilities | $ | 1,350 | $ | 110 | ||||
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.