Ambow Education Holding Ltd. Leases Disclosure
16. LEASES
The Company has operating leases for classrooms, dormitories, and corporate offices.
The components of lease expense from continuing operations were as follows:
| Years ended December 31, | ||||||||
| 2024 | 2025 | |||||||
| Operating lease expense | $ | 2,353 | $ | 1,095 | ||||
Supplemental cash flow information related to leases was as follows:
| Years ended December 31, | ||||||||
| 2024 | 2025 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 871 | $ | 398 | ||||
Supplemental balance sheet information related to leases was as follows:
| Years ended December 31, | ||||||||
| 2024 | 2025 | |||||||
| Weighted-average Remaining Lease Term | ||||||||
| Operating leases | 1.19 Years | 4.76 Years | ||||||
| Weighted-average Discount Rate | — | — | ||||||
| Operating leases | 4.31 | % | 6.85 | % | ||||
The Company’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The weighted-average discount rate was calculated using the discount rate for the lease that was used to calculate the lease liability balance for each lease and the remaining balance of the lease payments for each lease as of December 31, 2025.
The Company performed an impairment test on the operating lease right-of-use assets and recognized an impairment loss of for the years ended December 31, 2024 and 2025.
The weighted-average remaining lease terms were calculated using the remaining lease term and the lease liability balance for each lease as of December 31, 2025.
As of December 31, 2025, maturities of lease liabilities were as follows:
| Amount | ||||
| 2026 | $ | 1,339 | ||
| 2027 | 1,571 | |||
| 2028 | 1,389 | |||
| 2029 | 1,326 | |||
| 2030 | 1,371 | |||
| Thereafter | 115 | |||
| Total lease payments | 7,111 | |||
| Less: interest | (1,084 | ) | ||
| Total | 6,027 | |||
| Less: current portion | (1,285 | ) | ||
| Non-current portion | $ | 4,742 | ||
As of December 31, 2025, the Company had no material operating or finance leases that had not yet commenced.
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.