Capstone Holding Corp. Leases Disclosure
Note 9 Leases
As of December 31, 2024, the balance of our right-of-use (“ROU”) assets was $2.1 million, net and lease liabilities of $2.2 million, included in current portion, lease liability and , net of current portion. The maturity of our lease liabilities as of December 31, 2024 is as follows in (“000’s”):
| Year | Finance | Operating | ||||||
| 2025 | $ | 149 | $ | 638 | ||||
| 2026 | 102 | 656 | ||||||
| 2027 | 28 | 602 | ||||||
| 2028 | 8 | 86 | ||||||
| 2029 | ||||||||
| Thereafter | ||||||||
| Total undiscounted Lease Payments | 288 | 1,981 | ||||||
| Less: Present value discount | (10 | ) | (84 | ) | ||||
| Total Lease Liability | $ | 278 | $ | 1,897 | ||||
Lease expense recognized on our leases is as follows in (“000’s”):
| Twelve months Ended December 31, 2024 | Twelve months Ended December 31, 2023 | |||||||
| Finance leases | ||||||||
| Amortization expense | $ | 164 | $ | 139 | ||||
| Interest expense | 14 | 11 | ||||||
| Operating leases | ||||||||
| Straight-line rent expense | 779 | 779 | ||||||
| Total lease expense | $ | 957 | $ | 929 | ||||
The following summarizes additional information related to our leases for 2024 and 2023 in (“000’s”):
| Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||||||||||||
| Finance | Operating | Finance | Operating | |||||||||||||
| Weighted-average remaining lease terms (years) | 2.2 | 3.0 | 2.8 | 3.9 | ||||||||||||
| Weighted-average discount rate | 4.00 | % | 2.95 | % | 3.93 | % | 2.95 | % | ||||||||
| ROU assets obtained in exchange for new lease liabilities | $ | 63 | $ | — | $ | 219 | $ | |||||||||
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.