ACCESS Newswire Inc. Leases Disclosure

Note 10: Leases

 

Leasing activity generally consists of office leases. In March 2019, a lease was signed to move the corporate headquarters to Raleigh, North Carolina. The lease had a lease commencement date of October 2, 2019 and expires December 31, 2027. Minimum lease payments are $2,997,000, not including a tenant improvement allowance of $488,000, which is included in fixed assets as of December 31, 2025 and 2024. The Company recognized a ROU asset and corresponding lease liability of $2,596,000, which represents the present value of minimum lease payments discounted at 3.77%, the Company’s incremental borrowing rate at lease inception. 

 

Lease liabilities totaled $717,000 as of December 31, 2025. The current portion of this liability of $400,000 is included in Accrued expenses on the Consolidated balance sheets and the long-term portion of $317,000 is included in Lease liabilities on the Consolidated balance sheets. Rent expense consists of both operating lease expense from amortization of our ROU assets as well as variable lease expense which consists of non-lease components of office leases (i.e. common area maintenance) or rent expense associated with short-term leases. The components of lease expense were as follows (in thousands):

Schedule of lease expense
		Year Ended December 31,
		2025				2024
Lease expense
Operating lease expense		$	304			$	304
Variable lease expense			58				64
Rent expense		$	362			$	368

 

The weighted-average remaining non-cancelable lease term for our operating leases was 2 years as of December 31, 2025. As of December 31, 2025, the weighted-average discount rate used to determine the lease liability was 3.77%. Total required lease payments were $389,000 and $379,000 during the years ended December 31, 2025 and 2024, respectively. The future minimum lease payments to be made under non-cancelable operating leases on December 31, 2025, are as follows (in thousands):

Schedule of future lease payments of operating leases
Year ended December 31:
	2026				400
	2027				414
	Total lease payments				814
	Present value adjustment				(97	)
	Lease liability			$	717

 

We have performed an evaluation of our other contracts with customers and suppliers in accordance with Topic 842 and have determined that, except for the leases described above, none of our contracts contain a lease.

 

On December 18, 2025, the Company entered into a Commercial Sublease Agreement (the “Sublease”), to lease 100% of the corporate headquarters for the remaining term of the lease, commencing on March 1, 2026 through December 31, 2027. Under the terms of the Sublease, future minimum lease payments are $486,000. As a result of the Sublease, the Company recorded an impairment charge of $250,000, with $187,000 allocated to its right-of-use asset for the office lease and $63,000 allocated to its leasehold improvements.