Journey Medical Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

OPERATING LEASE OBLIGATIONS

For the Years Ended December 31,

Operating lease cost

Variable lease cost

Total lease cost

OPERATING LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2022

NOTE 11. OPERATING LEASE OBLIGATIONS

The Company leases 3,681 square feet of office space in Scottsdale, Arizona. The lease was set to expire on December 31, 2022. In September 2022, 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 will expire on January 31, 2025.

The Company recorded rent expense as follows (dollars in thousands):

The following table summarizes quantitative information about the Company’s operating leases (dollars in thousands):


	For the Years Ended December 31,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities	$	100		$	91
Right-of-use assets exchanged for new operating lease liabilities	$	188		$	—
Weighted-average remaining lease term - operating leases		2.1			1.0
Weighted-average discount rate - operating leases		6.25	%		4.0	%

As of December 31, 2022, future payments of operating lease liabilities are as follows:



For the year ended December 31,	($’s in thousands)
2023	$	92
2024		102
2025		9
Total lease payments		203
Less: present value discount		(12)
Total operating lease liabilities	$	191