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, 2024

NOTE 10. 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 lease expense as follows:


	Three-Month Periods Ended
	March 31,
($’s in thousands)	2024		2023
Operating lease cost	$	24	$	24
Variable lease cost		1		1
Total lease cost	$	25	$	25

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


	Three-Month Periods Ended
	March 31,
($’s in thousands)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities	$	25		$	17
Weighted-average remaining lease term - operating leases		0.8			1.8
Weighted-average discount rate - operating leases		6.25	%		6.25	%

As of March 31, 2024, future minimum lease payments under lease agreements associated with the Company’s operations were as follows:


$’s in thousands
Remainder of 2024	$	77
2025		9
Total lease payments		86
Less: present value discount		(2)
Total operating lease liabilities	$	84