AmpliTech Group, Inc. Leases Disclosure
(11) Leases
The following were included in our balance sheet as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | |||||||
| Operating leases | ||||||||
| Assets | ||||||||
| ROU operating lease assets | $ | 3,873,697 | $ | 4,399,975 | ||||
| Liabilities | ||||||||
| Current portion of operating lease | $ | 499,072 | $ | 449,622 | ||||
| Operating lease, net of current portion | $ | 3,640,491 | $ | 4,139,562 | ||||
| Total operating lease liabilities | $ | 4,139,563 | $ | 4,589,184 | ||||
| Financing leases | ||||||||
| Assets | ||||||||
| Property and equipment, gross | $ | 80,426 | $ | 234,036 | ||||
| Accumulated depreciation | (41,848 | ) | (190,217 | ) | ||||
| Property and equipment, net | $ | 38,578 | $ | 43,819 | ||||
| Liabilities | ||||||||
| Current portion of financing lease | $ | 17,646 | $ | 16,522 | ||||
| Financing lease, net of current portion | $ | 21,386 | $ | 15,478 | ||||
| Total financing lease liabilities | $ | 39,032 | $ | 32,000 | ||||
The weighted-average remaining lease term and weighted-average discount rate on December 31, 2025 and 2024 are as follows:
| Weighted-average remaining lease term (years) | December 31, 2025 | December 31, 2024 | ||||||
| Operating leases | 7.02 | 7.95 | ||||||
| Financing leases | 2.59 | 2.08 | ||||||
| Weighted-average discount rate | ||||||||
| Operating leases | 6.30 | % | 6.40 | % | ||||
| Financing leases | 7.52 | % | 4.65 | % | ||||
Operating Leases
On October 15, 2021, the Company entered a new lease for a 20,000 square foot facility at 155 Plant Avenue, Hauppauge, New York, for a term of seven years and two months. The yearly base rent of $346,242 shall increase at a rate of 2.75% per year to begin on the first anniversary lease commencement date and each year thereafter. The first two months of basic rent shall be abated following the commencement lease date. In the event the landlord decides to sell the property, the Company shall have the right of first offer to purchase subject property. Upon lease execution, the Company paid two months of base rent as a security deposit and one month’s rent totaling $86,560. The Company moved into the new manufacturing and headquarters facility April 1, 2022.
AmpliTech Group, Inc.
Notes To Consolidated Financial Statements
For the Years Ended December 31, 2025 and 2024
On December 15, 2021, the Company assumed the SSM lease agreement for office and warehouse space in San Jose, CA, with the same terms and conditions. Effective February 1, 2020, the lease term will expire on January 31, 2025, with a base rent of $24,234 for the first 12 months and increases by approximately 3% every year. On September 6, 2024, the lease was amended extending the lease term to March 31, 2030, while maintaining the base rent of $24,234 and 3% increases for each year thereafter.
On August 9, 2023, the Company entered a 39-month agreement for $20,880 to lease an automobile with a monthly payment of $605.
On January 15, 2024, the Company entered a triple net lease agreement for a 1,900 square foot facility in Allen, Texas for a term of five years and one month. The yearly base rent of $53,675 shall increase at a rate of 2.5% per year to begin on the first anniversary lease commencement date and each year thereafter. The first month’s rent shall be abated following the commencement lease date. Upon lease execution, the Company paid two months of rent as a security deposit and one month’s rent totaling $17,999. The Company moved into the new facility on August 1, 2024.
The following table reconciles future minimum operating lease payments to the discounted lease liability as of December 31, 2025:
| 2026 | $ | 743,301 | ||
| 2027 | 757,493 | |||
| 2028 | 779,311 | |||
| 2029 | 781,351 | |||
| 2030 | 510,606 | |||
| Thereafter | 1,470,323 | |||
| Total lease payments | 5,042,385 | |||
| Less imputed interest | (902,822 | ) | ||
| Total lease obligations | 4,139,563 | |||
| Less current obligations | (499,072 | ) | ||
| Long-term lease obligations | $ | 3,640,491 |
Finance Lease
The Company entered into several 60-month lease agreements to finance certain laboratory and office equipment. As such, the Company has accounted for these transactions as a finance lease.
AmpliTech Group, Inc.
Notes To Consolidated Financial Statements
For the Years Ended December 31, 2025 and 2024
The following table reconciles future minimum finance lease payments to the discounted lease liability as of December 31, 2025:
| 2026 | $ | 20,082 | ||
| 2027 | 12,094 | |||
| 2028 | 8,100 | |||
| 2029 | 3,375 | |||
| Total lease payments | 43,651 | |||
| Less imputed interest | (4,619 | ) | ||
| Total lease obligations | 39,032 | |||
| Less current obligations | (17,646 | ) | ||
| Long-term lease obligations | $ | 21,386 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 25, 2020 | |
| 2018 | Mar 21, 2019 | |
| 2015 | Mar 31, 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.