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

3 Months Ended

Mar. 31, 2022

NOTE 12. 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-Month Periods Ended March 31,
($’s in thousands)	2022		2021
Lease cost
Operating lease cost		26		23
Variable lease cost		1		1
Total lease cost	$	27	$	24

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


	Three-Month Periods Ended March 31,
($’s in thousands)	2022			2021
Operating cash flows from operating leases	$	25		$	18
Weighted-average remaining lease term - operating leases		0.8			1.3
Weighted-average discount rate - operating leases		4.0	%		4.0	%

As of March 31, 2022, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:


	Future Lease
($ 's in thousands)	Liability
Three-Month Period Ended March 31, 2022	$	75
Total		75
Less: present value discount		(1)
Operating lease liabilities	$	74