Note 13. Leases

BTI leases office space for its corporate headquarters at 555 Long Wharf Drive, New Haven, Connecticut (the “HQ Lease”) under an operating lease that expires in February 2026. The Company has an option to renew the HQ Lease for one additional five-year term that has not been exercised as of December 31, 2025. Payments under the HQ Lease are fixed.

The Company also leases equipment such as copiers and information technology equipment.

The future minimum annual lease payments under operating leases, as of December 31, 2025, were as follows:

Year ending December 31,

  ​ ​ ​

Amount

2026

$

65

Thereafter

Total lease payments

$

65

Imputed interest

Total lease liability

$

65

Less current portion of lease liability

(65)

Long-term portion of operating lease liability

$

The current portion of the Company’s operating lease liability of $65, as of December 31, 2025, is included in Other current liabilities on the Consolidated Balance Sheets.

Lease expense was $410 and $394 for the years ended December 31, 2025 and 2024, respectively.

Lease renewal options are not included in the ROU asset or lease liability.

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 28, 2025
2023Mar 22, 2024
2022Mar 16, 2023
2021Mar 11, 2022
2020Mar 12, 2021
2019Mar 9, 2020
2018Mar 12, 2019

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.