CALLAN JMB INC. Leases Disclosure
NOTE 6 – OPERATING LEASES
The Company has various warehouse leases with its landlord that expire between 2025 and 2029. The Company’s right-of-use assets and lease liabilities primarily represent lease payments that are fixed at the commencement of a lease and variable lease payments that are dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s estimated incremental borrowing rate coinciding with the lease term at the commencement of a lease. The estimated incremental borrowing rate for the Company was determined to be in the range of 3.0%-8.50%.
Lease – related assets and liabilities recorded on the Balance Sheets are as follows:
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Right of use asset – long term | $ | 883,029 | $ | 275,208 | ||||
| Total right of use asset | $ | 883,029 | $ | 275,208 | ||||
| Liabilities | ||||||||
| Right of use liability – current | $ | 279,176 | $ | 151,627 | ||||
| Right of use liability – long-term | 628,274 | 132,488 | ||||||
| Total lease liabilities | $ | 907,450 | $ | 284,115 | ||||
As of December 31, 2024, maturities of lease liabilities were as follows:
| Maturities | ||||
| 2025 | $ | 342,065 | ||
| 2026 | 187,600 | |||
| 2027 | 185,100 | |||
| 2028 | 185,100 | |||
| 2029 | 185,094 | |||
| Total | 1,084,959 | |||
| Less imputed interest | 177,509 | |||
| Total lease liabilities | $ | 907,450 | ||
We recognized lease costs associated with all leases as follows:
| For the Year ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Operating lease expenses: | ||||||||
| Fixed rent expense | $ | 425,291 | $ | 316,551 | ||||
| Variable rent expense | 625 | 625 | ||||||
| Total lease expenses | $ | 425,916 | $ | 317,176 | ||||
CALLAN JMB INC.
(Formerly known as Coldchain Technology Services, LLC)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2024 and 2023
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.