Journey Medical Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE OBLIGATIONS

OPERATING LEASE OBLIGATIONS

9 Months Ended

Sep. 30, 2021

NOTE 11. OPERATING LEASE OBLIGATIONS

The Company leases 3,681 square feet of office space in Scottsdale, Arizona. In August 2020, the Company amended its office lease and extended the lease term for an additional 25 months at an annual rate of approximately $0.1 million. The term of the amended lease commenced on December 1, 2020 and will expire on December 31, 2022.

The Company recorded rent expense as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
($in thousands)	2021		2020		2021		2020
Lease cost
Operating lease cost		23		23		67		70
Variable lease cost		1		—		3		—
Total lease cost	$	24	$	23	$	70	$	70

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


	Nine Months Ended September 30,
($in thousands)	2021			2020
Operating cash flows from operating leases	$	67		$	70
Weighted-average remaining lease term – operating leases		1.1			0.3
Weighted-average discount rate – operating leases		4.0	%		6.0	%

As of September 30, 2021, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:


	Future Lease
($in thousands)	Liability
Three Months Ended December 31, 2021	$	24
Year Ended December 31, 2022		100
Total		124
Less: present value discount		(4)
Operating lease liabilities	$	120