Ambiq Micro, Inc. Leases Disclosure
10. Leases
The Company has entered into various operating leases for its worldwide office buildings and research and development facilities and equipment, which are accounted for in accordance with ASC 842.
As of December 31, 2025, the Company entered into a noncancelable lease agreement for office space in Singapore that had not yet commenced. The lease is expected to commence on or about January 15, 2026 and has an initial noncancelable term of three years. Total minimum lease payments under the agreement are approximately SGD 2.2 million over the lease term. As the lease had not commenced as of December 31, 2025, no right-of-use asset or corresponding lease liability was recognized in the consolidated balance sheets.
For the years ended December 31, 2025 and 2024, the Company recorded approximately $0.7 million and $1.0 million of operating lease expense, respectively, under ASC 842. All of the Company’s leases have been classified as operating leases.
Supplemental cash flow information for the years ending December 31, 2025 and 2024, were as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
||
Cash paid for operating leases included in operating cash flow |
|
$ |
731 |
|
|
$ |
1,068 |
|
Supplemental non-cash information related to lease liabilities |
|
|
382 |
|
|
|
1,207 |
|
The aggregate future lease payments of operating leases as of December 31, 2025, are as follows (in thousands):
|
|
|
|
|
2026 |
|
|
417 |
|
2027 |
|
|
256 |
|
2028 |
|
|
26 |
|
Total future annual minimum lease payments |
|
|
699 |
|
Less: interest |
|
|
(21 |
) |
Total lease liabilities |
|
$ |
678 |
|
As of December 31, 2025, the weighted average remaining lease term for the Company’s operating leases is 1.73 years and the weighted average discount rate used to determine the present value of the Company’s operating leases is 3.6%.
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.