Binah Capital Group, Inc. Leases Disclosure
12.LEASES
The Company has obligations as a lessee for office space with initial noncancelable terms in excess of one year. The Company classifies these leases as operating leases. These leases generally contain renewal options for periods ranging from 2 to 10 years. Because the Company is not reasonably certain to exercise these , the optional periods are not included in determining the lease term, and associated payments under these renewal options are excluded from lease payments used to determine the lease liability. The Company’s leases do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contracts include fixed payments plus, for many of the Company’s leases, variable payments. The Company’s office space leases require it to make variable payments for the Company’s proportionate share of the building’s property taxes, insurance, and common area maintenance. These variable lease payments are not included in lease payments used to determine lease liability and are recognized as variable costs when incurred.
The components of lease cost for the years ended December 31, 2025 and 2024 are as follows (in thousands):
| 2025 | | 2024 | |||
Operating lease cost | $ | 1,097 | $ | 1,112 | ||
Variable lease cost |
| 44 |
| 38 | ||
Total lease cost | $ | 1,141 | $ | 1,150 | ||
Total lease cost is included in rent and occupancy on the consolidated statements of operations.
Amounts reported in the consolidated statements of financial condition as of December 31, 2025 and 2024 were as follows (in thousands):
| 2025 | | 2024 | |||
Operating lease ROU assets | $ | 3,097 | $ | 3,730 | ||
Operating lease liabilities | $ | 3,221 | $ | 3,820 | ||
Other supplemental information related to leases as of December 31, 2025 and 2024 are as follows:
Cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2025 and 2024 (in thousands):
| 2025 | | 2024 | |||
Operating leases | $ | 599 | $ | 464 | ||
Weighted-average remaining lease term as of December 31, 2025 and 2024:
| 2025 | | 2024 | |
Operating leases |
| 4.7 years |
| 5.7 years |
Weighted-average discount rate as of December 31, 2025 and 2024:
| 2025 | | 2024 |
| |
Operating leases |
| 5.5 | % | 5.5 | % |
12.LEASES (continued)
Maturities of lease liabilities as of December 31, 2025 were as follows (in thousands):
2026 | | $ | 767 |
2027 |
| 731 | |
2028 |
| 731 | |
2029 |
| 731 | |
2030 |
| 670 | |
| 3,630 | ||
Less: Imputed interest |
| 409 | |
Lease liability | $ | 3,221 |
Subsequent to December 31, 2025, on February 4, 2026, WEG entered into an a first amendment for their existing office space to extend the lease from May 1, 2026 through August 1, 2029. Additionally, on January 7, 2026, the Company entered into a lease for office space with a term beginning in February 2026 through June 2029. Future minimum payments on these leases are as follows:
2026 | | $ | 169 |
2027 |
| 187 | |
2028 |
| 190 | |
2029 |
| 102 | |
Total | $ | 648 |
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.