Journey Medical Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

OPERATING LEASE OBLIGATIONS

OPERATING LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2025

NOTE 10. OPERATING LEASE OBLIGATIONS

The Company leases 3,801 square feet of office space in Scottsdale, Arizona. In July 2024, the Company amended the lease to extend the lease term for an additional 25 months at an annual rate of approximately $0.1 million. The amended lease commenced on February 1, 2025 and expires on February 28, 2027.

The Company recorded lease expense as follows:


	Three-Month Periods Ended
	March 31,
($’s in thousands)	2025		2024
Operating lease cost	$	25	$	24
Variable lease cost		1		1
Total lease cost	$	26	$	25

The following table summarizes quantitative information about the Company’s operating leases:


	Three-Month Periods Ended
	March 31,
($’s in thousands)	2025			2024
Cash paid for amounts included in the measurement of lease liabilities	$	17		$	25
Weighted-average remaining lease term - operating leases		1.9			0.8
Weighted-average discount rate - operating leases		7.35	%		6.25	%

As of March 31, 2025, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:


$’s in thousands
Remainder of 2025	$	77
2026		105
2027		18
Total lease payments		200
Less: present value discount		(13)
Total operating lease liabilities	$	187