Note 9. OPERATING LEASE LIABILITIES

 

The Company has operating leases for leased office and manufacturing facilities. The leases have remaining lease terms of one to five years, some of which include options to extend or terminate the leases.

 

   Year Ended 
   December 31,   December 31, 
   2025   2024 
Operating lease cost:  $1,044,000   $1,286,000 
Total lease cost  $1,044,000   $1,286,000 
           
Other Information          
Cash paid for amounts included in the measurement lease liability:   1,249,000    1,070,000 
Operating cash flow from operating leases  $1,249,000   $1,070,000 

 

   December 31,   December 31, 
   2025   2024 
Weighted Average Remaining Lease Term - in years   0.75    1.72 
Weighted Average discount rate - %   9.50%   9.36%

The aggregate undiscounted cash flows of operating lease payments, with remaining terms greater than one year are as follows:

 

   Amount 
December 31, 2026   730,000 
Total future minimum lease payments   730,000 
Less: discount   (28,000)
Total operating lease maturities   702,000 
Less: current portion of operating lease liabilities   (702,000)
Total long term portion of operating lease maturities  $
-
 

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Apr 15, 2025
2023Apr 15, 2024
2022May 16, 2023
2021Mar 25, 2022
2020Mar 29, 2021
2019Mar 27, 2020
2015Apr 4, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.