Beam Global Leases Disclosure
| 11. | LEASES |
On September 1, 2020, the Company entered into a -year operating lease for their headquarters building in San Diego, California. The term of the existing lease was extended until February 28, 2026 and subsequently until September 30, 2026. The agreement also provides that the Landlord may terminate the lease upon sixty (60) days’ prior written notice to the Company. At this time, it is not reasonably certain that the Company will extend the term of the lease and, therefore, the renewal periods have been excluded from the right-of-use (“ROU”) asset.
As part of the All Cell acquisition, the Company assumed a facility lease located in Broadview, Illinois, and recorded $0.2 million in right-of-use asset and lease liability. The lease term ended on August 31, 2023 and contains clauses for annual rent escalation. The present values of the lease payment streams were calculated using an effective borrowing rate of 10%. The Company remained in the facility on a month-to-month lease and then entered into a -year lease extension effective February 1, 2024 and recorded $1.4 million in right-of-use asset and lease liability.
As part of the acquisitions in Serbia, the Company assumed a lease for a small office and a few minimal leases in Belgrade, Serbia, which have an indefinite term and may be terminated at any time with 30 days’ notice. Because of the short term and small value, these leases were not capitalized.
During the twelve months ended December 31, 2025 and 2024, cash paid for amounts included in the measurement of operating lease liabilities were $0.8 million and $1.1 million, respectively. Operating lease costs for the twelve months ended December 31, 2025 and 2024 were $0.8 million and $1.0 million, respectively.
The table below summarizes the Company's lease-related assets and liabilities as of December 31, 2025 and 2024:
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Lease assets | $ | 1,358 | $ | 1,893 | ||||
| Lease liabilities | ||||||||
| Current operating lease liabilities, included in current liabilities | $ | 484 | $ | 696 | ||||
| Noncurrent operating lease liabilities, included in long-term liabilities | 815 | 971 | ||||||
| Total Lease liabilities | $ | 1,299 | $ | 1,667 | ||||
Supplemental cash flow information related to the lease is as follows:
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 752 | $ | 1,098 | ||||
| Right-of-use assets obtained in exchange for lease obligations: | ||||||||
| Operating leases | $ | 442 | $ | 1,697 | ||||
| Weighted Average Remaining Lease Term: | ||||||||
| Operating leases | 2.67 | 3.22 | ||||||
| Weighted Average Discount Rate: | ||||||||
| Operating leases | 10 | % | 10 | % | ||||
As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The future minimum rental commitments for our operating leases is as follows:
| 2026 | $ | 598 | ||
| 2027 | 500 | |||
| 2028 | 390 | |||
| Thereafter | - | |||
| Total undiscounted future minimum payments | 1,488 | |||
| Less imputed interest | (189 | ) | ||
| Total lease liability | $ | 1,299 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 9, 2026 | Showing above |
| 2024 | Apr 11, 2025 | |
| 2023 | Apr 16, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 30, 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.