Arena Group Holdings, Inc.AREN

Arena Group Holdings, Inc. Leases Disclosure

10-KFiled Mar 16, 20263 min read
Leases
The Company has a real estate lease for the use of office space.
The table below presents information related to the operating leases:
As of December 31,
20252024
Operating lease costs during the period (1)$562 $431 
Cash payments included in the measurement of operating lease liabilities during the period (2)– 916 
Operating lease liability arising from obtaining lease right-of-use assets during the period– 2,583 
Weighted-average remaining lease term (in years) as of period-end4.925.92
Weighted-average discount rate during the period10.90%10.90%
(1) For the year ended December 31, 2024, operating lease costs is presented net of sublease income that is not material.
(2) For the year ended December 31, 2025, there were no cash payments included in the measure of operating lease liabilities during the period since the Company has a deferral period through December 2025 before any cash payments are required under a lease with an effective date of April 1, 2024 with an initial lease term of 6.67 years.
The Company generally utilizes its incremental borrowing rates on a collateralized basis, reflecting the Company’s credit quality and the term of the lease at the commencement of the lease in determining the present value of future payments since the implicit rate for the Company’s leases is not readily determinable.
Variable lease expense includes rental increases that are not fixed, such as those based on amounts paid to the lessor based on cost or consumption, such as maintenance and utilities.
The components of operating lease costs were as follows:
As of December 31,
20252024
Operating lease costs included in:
General and administrative$562 $884 
Total operating costs562 884 
Less sublease income– (453)
Total operating lease costs$562 $431 
Maturities of the operating lease liability as of December 31, 2025 are summarized as follows:
Years Ending December 31,
2026$652 
2027652 
2028652 
2029652 
2030597 
Thereafter– 
Minimum lease payments3,205 
Less imputed interest(732)
Present value of operating lease liabilities$2,473 
Current portion of operating lease liabilities$402 
Long-term portion of operating lease liabilities2,071 
Total operating lease liabilities$2,473 
Sublease Agreement – The Company entered into agreements to sublease certain space that it does not occupy, through the duration of the lease terms, with one sublease that expired in September 2024 and two other subleases (these operating leases were recorded as an assumed lease liability in connection with the acquisition of Men’s Journal) that expired in March 2025.
Lease Termination – Effective September 30, 2021, the Company terminated a certain lease arrangement for office space. In connection with the termination, the Company agreed to pay the landlord cash payments and credits for market rate advertising, where $4,000 of cash payments were paid during the year ended December 31, 2024, and market rate advertising of $800 recognized during the year ended December 31, 2024, leaving no further obligations related to the lease termination. No amounts were paid or recognized during the year ended December 31, 2025, and there are no remaining obligations related to the lease termination as of December 31, 2025.
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Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Apr 15, 2025
2023Apr 1, 2024
2022Mar 31, 2023
2021Apr 1, 2022
2020Aug 16, 2021
2019Apr 9, 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.

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