Leases

9 Months Ended

Sep. 30, 2025

Note 8 – Leases

The Company has various lease agreements, including leases of office space, a laboratory and manufacturing facility, and various equipment. Some leases include purchase, termination or extension options for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised.

The assets and liabilities from operating and finance leases are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rates or implicit rates, when readily determinable. Short-term leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. The Company’s operating leases do not provide implicit rates, therefore the Company utilized a discount rate based on its incremental borrowing rate to record the lease obligations. The Company’s finance leases provide readily determinable implicit rates.

Operating lease obligations

The Company incurred lease expense for its operating leases of $168 and $225 for the three months ended September 30, 2025 and 2025, respectively, and $513 and $667 for the nine months ended September 30, 2025 and 2024, respectively. The Company incurred amortization expense on its operating lease right-of-use assets of $111 and $152 for the three months ended September 30, 2025 and 2024, respectively, and $329 and $446 for the nine months ended September 30, 2025 and 2024, respectively.

Finance Leases

The Company incurred interest expense on its finance leases of $0 and $1 for the three months ended September 30, 2025 and 2024 and $0 and $2 for the nine months ended September 30, 2025 and 2024, respectively. The Company incurred amortization expense on its finance lease right-of-use assets of $1 for the three months ended September 30, 2025 and 2024, and $3 and $4 for the nine months ended September 30, 2025 and 2024, respectively.

The following table presents information about the amount and timing of liabilities arising from the Company’s operating leases and finance leases as of September 30, 2025:

Maturity of Lease Liabilities	Operating Lease Liabilities			Finance Lease Liabilities
Remainder of 2025	$	255		$	4
2026		1,040			7
2027		944			7
2028		273			—
2029		138			—
		-			-
Total undiscounted operating lease payments	$	2,650		$	18
Less: Imputed interest		332			2
Present value of operating lease liabilities	$	2,318		$	16

Weighted average remaining lease term in years		2.7			2.2
Weighted average discount rate		9.4	%		11.6	%

The following table presents information about the amount and timing of liabilities arising from the Company’s operating leases and finance leases as of December 31, 2024:

Maturity of Lease Liabilities	Operating Lease Liabilities			Finance Lease Liabilities
2025	$	998		$	7
2026		1,040			7
2027		944			7
2028		273			—
2029		138			—
Total undiscounted operating lease payments	$	3,393		$	21
Less: Imputed interest		516			4
Present value of operating lease liabilities	$	2,877		$	17

Weighted average remaining lease term in years		3.3			2.9
Weighted average discount rate		9.3	%		11.6	%

Matinas BioPharma Holdings, Inc. 10-Q