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

Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASE OBLIGATIONS

Three Month Period Ended March 31,

($’s in thousands)

Operating lease cost

Variable lease cost

Total lease cost

OPERATING LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2023

NOTE 12. OPERATING LEASE OBLIGATIONS

The Company leases 3,681 square feet of office space in Scottsdale, Arizona. 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:

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



	Three-Month Period Ended March 31,
($’s in thousands)	2023			2022
Cash paid for amounts included in the measurement of lease liabilities	$	17		$	25
Weighted-average remaining lease term - operating leases		1.8			0.8
Weighted-average discount rate - operating leases		6.25	%		4.0	%

As of March 31, 2023, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:


$’s in thousands
Remainder of 2023	$	76
2024		102
2025		9
Total lease payments		187
Less: present value discount		(10)
Total operating lease liabilities	$	177