Apyx Medical Corp Leases Disclosure
NOTE 7. LEASES
Operating Leases
The Company leases its facilities in Clearwater, Florida and Sofia, Bulgaria under non-cancelable operating lease agreements. During May 2023, the Company entered into a Single Tenant Industrial Building Lease (the “Lease”), on property it previously owned in Clearwater, Florida. The Lease has an initial term of ten (10) years commencing from the closing (the “Initial Term”), and a renewal term of five (5) years, exercisable at the Company’s option. The annual fixed rent is $619,500 for the first year of the Initial Term, and is subject to a 4% escalation every year thereafter through the Initial Term. Rent will be reset to the current market rate should the Company exercise the renewal option. The Lease provides for a 3% management fee on rent payments throughout the Initial Term and optional renewal term. During the year ended December 31, 2022, the Company entered into a -year extension of its Sofia, Bulgaria facility. These operating leases have terms expiring through May 2033.
Finance Leases
The Company has entered into non-cancelable finance leases for certain computer equipment in Clearwater, Florida. During the year ended December 31, 2022, the Company entered into a 63-month lease for computer equipment. The computer equipment lease expires in July 2027.
Information about the Company’s lease costs are as follows:
| Year Ended | ||||||||
| December 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Operating lease costs | $ | 785 | $ | 888 | ||||
| Finance lease costs: | ||||||||
| Amortization of right-of-use assets | 21 | 21 | ||||||
| Interest on lease liabilities | 1 | 1 | ||||||
| Variable lease costs | 133 | 103 | ||||||
| Total lease costs | $ | 940 | $ | 1,013 | ||||
Cash information related to our leases are as follows:
| Year Ended | Year Ended | |||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||
| (in thousands) | Operating | Finance | Operating | Finance | ||||||||||||
| Cash paid for lease liabilities | $ | 810 | $ | 21 | $ | 778 | $ | 21 | ||||||||
Information about the Company’s weighted average remaining lease terms and discount rate assumptions are as follows:
| Year Ended | Year Ended | |||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||
| Operating | Finance | Operating | Finance | |||||||||||||
| Weighted average remaining lease term (in years) | 7.1 | 1.6 | 8.0 | 2.6 | ||||||||||||
| Weighted average discount rate | 8.67 | % | 2.32 | % | 8.58 | % | 2.32 | % | ||||||||
Maturities of lease liabilities as of December 31, 2025 are as follows:
| (In thousands) | Operating | Finance | ||||||
| 2026 | $ | 839 | $ | 21 | ||||
| 2027 | 868 | 12 | ||||||
| 2028 | 764 | — | ||||||
| 2029 | 794 | — | ||||||
| 2030 | 826 | — | ||||||
| Thereafter | 2,131 | — | ||||||
| Total lease payments | 6,222 | 33 | ||||||
| Less imputed interest | (1,764 | ) | — | |||||
| Present value of lease liabilities | 4,458 | 33 | ||||||
| Less current portion of lease liabilities | (407 | ) | (21 | ) | ||||
| Long-term portion of lease liabilities | $ | 4,051 | $ | 12 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 17, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 31, 2020 | |
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.