ALICO, INC.ALCO

ALICO, INC. Leases Disclosure

10-KFiled Nov 24, 20252 min read
Note 12. Leases
The Company determines whether an arrangement is a lease at inception. The Company’s leases consist of operating lease arrangements for certain office space and IT facilities. When these lease arrangements include lease and non-lease components, the Company accounts for lease components and non-lease components (e.g., common area maintenance) separately based on their relative standalone prices.
Any lease arrangements with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets, and it recognizes lease cost for these lease arrangements on a straight-line basis over the applicable lease term. Many lease arrangements provide the options to exercise one or more renewal terms or to terminate the lease arrangement. When the options are reasonably certain to be exercised the Company includes these options when it will be reasonably certain to exercise them in the lease term used to establish the right-of-use assets and lease liabilities. Generally, lease agreements do not include an option to purchase the leased asset, residual value guarantees or material restrictive covenants.
As most of our lease arrangements do not provide an implicit interest rate, the Company applies an incremental borrowing rate based on the information available at the commencement date of the lease arrangement to determine the present value of lease payments.
No lease costs associated with finance leases and sale-leaseback transactions occurred and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements.
Our operating leases are reported in our Consolidated Balance Sheets as follows:
(in thousands)ClassificationSeptember 30,
2025		September 30,
2024
Operating lease components
Right-of-use assets – non-currentOther non-current assets$154 $293 
Current lease liabilitiesOther current liabilities$150 $153 
Non-current lease liabilitiesOther liabilities$14 $170 
Our operating leases cost components are reported in our Consolidated Statements of Operations as follows:
(in thousands)ClassificationSeptember 30,
2025		September 30,
2024
Operating lease components
Operating lease costsGeneral and administrative expenses$148 $148 
Future maturities of our operating lease obligations as of September 30, 2025, by year, are as follows:
(in thousands)
2026$145 
202722 
2028— 
2029— 
2030— 
Total noncancelable future lease obligations$167 
Less: Interest(3)
Present value of lease obligations$164 
September 30, 2025
Weighted-average remaining lease term (years)0.94
Weighted-average discount rate5.21%
Cash flow information related to leases consists of the following:
(in thousands)September 30,
2025		September 30,
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$141 $155 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$— $— 

Historical Timeline

Fiscal YearFiled
2025Nov 24, 2025Showing above
2024Dec 2, 2024
2023Dec 6, 2023
2022Dec 13, 2022
2021Dec 7, 2021

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.

Other Available Disclosures

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