Leases

9 Months Ended

Sep. 30, 2025

Note 9 – Leases

In January 2024, the Company entered into a long-term operating lease agreement for 14,000 square feet of biopharmaceutical manufacturing space in California under a non-cancelable operating lease that expires in December 2033. Under the terms of the lease, the Company is required to pay monthly base rents ranging from $11,900 to $16,218, and pay its proportionate share of property taxes, insurance and normal maintenance costs. The lease agreement includes two options to extend the lease for a term of five years each.

The components of lease cost for operating leases, which are recorded in general and administrative expenses in the accompanying condensed consolidated statement of operations, for the three and nine months ended September 30, 2025 and 2024 were as follows:

	Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025
Operating lease cost	$	58,355	$	142,655
Short-term lease cost		23,848		46,259
Total lease cost	$	82,203	$	188,914

	Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Operating lease cost	$	42,150	$	126,450
Short-term lease cost		12,196		44,020
Total lease cost	$	54,346	$	170,470

The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at September 30, 2025 and December 31, 2024:

	September 30, 2025		December 31, 2024
Operating Leases
Operating lease right-of-use assets	$	1,005,434	$	989,471
Right of use liability operating lease current portion	$	141,282	$	65,219
Right of use liability operating lease long term		965,053		1,009,551
Total operating lease liabilities	$	1,106,335	$	1,074,770

The Company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. The Company estimated its incremental borrowing rate to be 8%. The Company’s leases have a weighted-average remaining term of 7.69 years and an implicit weighted average interest rate of 8%.

The following table provides the maturities of lease liabilities at September 30, 2025:

Schedule of Maturity Lease Liability

	Operating
	Leases
2025 (remaining 6 months)	$	54,950
2026		218,971
2027		158,325
2028		163,866
2029 and thereafter		909,482
Total future undiscounted lease payments		1,505,594
Less: Interest		(399,259	)
Present value of lease liabilities	$	1,106,335

Immix Biopharma, Inc. 10-Q