Tonix Pharmaceuticals Holding Corp. Leases Disclosure
NOTE 16 – LEASES
The Company has various operating lease agreements, which are primarily for office space. These agreements frequently include one or more renewal options and require the Company to pay for utilities, taxes, insurance and maintenance expense. No lease agreement imposes a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At December 31, 2025, the Company has right-of-use assets of $ million and a total lease liability for operating leases of $ million of which $ million is included in long-term lease liabilities and $ million is included in current lease liabilities.
At December 31, 2025, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in thousands):
| Year Ending December 31, | |||||
| 2026 | $ | 142 | |||
| 2027 | 480 | ||||
| 2028 | 451 | ||||
| 2029 | 366 | ||||
| 2030 and thereafter | 31 | ||||
| 1,470 | |||||
| Included interest | (161 | ) | |||
| $ | 1,309 | ||||
During the year ended December 31, 2025, the Company entered into a new operating lease and lease amendments. The lease commencement during the fourth quarter of 2025, at which time the Company recognized an additional operating lease liability of approximately $1.3 million based on the present value of the minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $1.3 million, which represents a non-cash investing and financing activity. No new leases or amendments were entered into during the year ended December 31, 2024.
Other information related to leases is as follows:
Operating lease expense was $0.3 million for both the years ended December 31, 2025, and 2024.
Other information related to leases is as follows:
| Cash paid for amounts included in the measurement of lease liabilities: | Year
Ended December 31, 2025 |
Year
Ended December 31, 2024 |
||||||
| Operating cash flow from operating leases (in thousands) | $ | 329 | $ | 292 | ||||
| Weighted Average Remaining Lease Term | ||||||||
| Operating leases | 3.74 years | 3.10 years | ||||||
| Weighted Average Discount Rate | ||||||||
| Operating leases | 5.46 | % | 4.92 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 13, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2019 | Mar 24, 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.