LEASE AGREEMENTS

12 Months Ended

Dec. 31, 2025

Lease Agreements

LEASE AGREEMENTS

NOTE 7 – LEASE AGREEMENTS

1) U.S. Lease

On October 9, 2024, the Company entered into a lease agreement in Miami, Florida (the “U.S. Lease”) for the establishment of its global headquarters. The U.S. Lease provides for the phased delivery of the leased premises located in Suites 215 and 280 at 6303 Waterford District Drive, Miami, Florida 33126. Rent commencement and lease recognition occur upon the Company obtaining control of each portion of the premises, in accordance with the lease terms. The lease term extends through September 30, 2030 and includes an option to extend the lease for an additional five years. The Company has determined that the renewal option is not reasonably certain to be exercised due to operational and strategic considerations.

The Company took possession of Suite 215 on November 1, 2024, which represented the commencement date for that portion of the leased premises. On May 18, 2025, the Company took possession of Suite 280 following the landlord’s completion of construction, which represented the commencement date for Suite 280. As a result of obtaining possession of Suite 280, during the year ended December 31, 2025, the Company recognized an increase of $302 thousand in operating lease right-of-use assets and a corresponding increase of $302 thousand in operating lease liabilities.

Under the U.S. Lease, the Company paid a security deposit of $500 thousand. Provided the Company does not default under the lease, the security deposit is refundable at specified intervals throughout the lease term. The present value of the deposit as of November 1, 2024, was $422 thousand and is classified as a long-term deposit. The remaining balance was assigned to operating lease right-of-use assets.

2) Israeli Lease

The Company’s Israeli subsidiary leases a facility in Israel under an operating lease (the “Israeli Lease”). The Israeli Lease was amended multiple times in prior years to extend the lease term and modify the leased premises. In prior periods, management concluded that optional extension periods through December 31, 2027 were reasonably certain to be exercised and were included in the lease term for accounting purposes.

On May 28, 2025, the Company amended the Israeli Lease, extending the lease term through December 31, 2028 and leasing additional space within the facility. As a result of this amendment, the Company recognized an increase of $692 thousand in operating lease right-of-use assets and a corresponding increase of $692 thousand in operating lease liabilities.

As of December 31, 2025, the Israeli Lease remains in effect through December 31, 2028.

3) Lease Cost

Operating lease cost for the years ended December 31, 2025 and 2024 was $470 thousand and $423 thousand, respectively, related to the Israeli Lease, and $251 thousand and $34 thousand, respectively, related to the U.S. Lease.

In addition to fixed lease payments under the U.S. Lease, the Company incurred variable lease costs, primarily related to utilities, maintenance, and other common area costs, totaling approximately $103 thousand for the year ended December 31, 2025.

4) Supplemental Lease Information

Supplemental balance sheet information related to leases was as follows:

	December 31,
	2025			2024
	($ in thousands)
Operating lease right-of-use assets		2,758			2,360
Current Operating lease liabilities		(1,066	)		(542	)
Non-current operating lease liabilities		(2,224	)		(1,796	)

Other information:

Operating cash flows from operating leases (cash paid in thousands)	(820	)	(745	)
Weighted Average Remaining Lease Term	3.57		3.93
Weighted Average Discount Rate	11.72	%	11.82	%

5) Maturities of Operating Lease Liabilities

Maturities of lease liabilities as of December 31, 2025, are as follows:

	Amount
	($ in thousands)
2026		1,133
2027		1,141
2028		1,150
2029		306
2030		236
Total lease payments		3,966
Less imputed interest		(676	)
Total		3,290

INSPIREMD, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)