CHICAGO RIVET & MACHINE CO Leases Disclosure
7. Leases. On November 30, 2024, the Company entered into a lease agreement with Juneau-Bell, LLC for new office space located at 27755 Diehl Road, Suite 200, Warrenville, IL 60555, which constitutes the Company's new headquarters. The lease commencement date was March 1, 2025. A security deposit of $43,970 and the first month’s base rent of $8,365 were paid at signing. These amounts were recorded as Deposits with Vendors and Other Current Assets, respectively, in the Consolidated Balance Sheets. The lease term is for 66 months with one option to renew for additional 60 months. The Company classified the agreement as an operating lease under ASC 842. On the commencement date of March 1, 2025, the Company recognized an of $424,188 and a corresponding of $415,824.
In addition to base rent, the Company is responsible for its proportionate share of common area maintenance (“CAM”) charges and other operating costs associated with the leased premises. These amounts are considered variable lease payments, based on actual costs incurred by the landlord and are not included in the measurement of the lease liability. The Company recorded variable lease expense of $12,435 in 2025 in the Consolidated Statements of Operations.
As of December 31, 2025, the expected annual minimum lease payments of the Company’s operating lease liability were as follows:
|
|
Operating Lease |
|
|
2026 |
|
$ |
103,420 |
|
2027 |
|
|
107,071 |
|
2028 |
|
|
110,721 |
|
2029 |
|
|
114,371 |
|
2030 |
|
|
78,478 |
|
Thereafter |
|
|
— |
|
Total undiscounted minimum lease payments |
|
|
514,061 |
|
Less: Present value discount |
|
|
93,098 |
|
|
$ |
420,963 |
|
|
. |
|
|
|
|
Discount rate - operating lease |
|
|
8.5 |
% |
. |
|
|
|
|
Weighted average remaining lease term |
|
56 months |
|
|
. |
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
Lease cost |
|
$ |
82,957 |
|
|
|
|
|
|
. |
|
|
|
|
Supplemental Cash Flows Information: |
|
|
|
|
Cash Paid for Amounts included in the Measurement of the Lease Liabilities |
|
|
2025 |
|
Operating cash flows for operating lease |
|
$ |
25,094 |
|
|
|
|
|
|
Operating Lease Right-of-Use Asset Obtained in Exchange for Operating Lease Liability |
|
|
|
|
Operating lease |
|
$ |
424,188 |
|
The Company has elected the short-term lease exemption for leases with an initial term of twelve months or less. Under this election, the Company recognized rent expense on a straight-line basis over the lease term within the Consolidated Statements of Operations. This exemption applied to the month-to-month lease agreement for the Company’s former headquarters located in Naperville, Illinois. The lease termination date was April 30, 2025. The Company recorded rent expense related to this lease of $47,000 and $112,800 in 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
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.