Dave Inc./DE Leases Disclosure
Note 13 Leases
In January 2019, the Company entered into a lease agreement with PCJW Properties LLC (“PCJW”) for office space located in Los Angeles, California. The lease term was seven years, beginning January 1, 2019 and ended December 31, 2025. Monthly rent was $0.02 million, subject to an annual escalation of 5%.
In December 2018, the Company entered into a sublease agreement with PCJW, controlled by Company’s founders (including the Company’s CEO), for general office space next to the aforementioned leased property in Los Angeles, California. The lease term was five years subject to early termination by either party, beginning November 2018 and ending October 2023. In November 2023, the Company extended the sublease for five more years ending October 2028. Under the terms of the sublease, the current monthly rent is $0.007 million, subject to an annual escalation of 4%.
All leases were classified as operating and operating lease expenses are presented within Other operating expenses in the consolidated statements of operations. The Company does not have any finance leases or sublease arrangements where the Company is the sublessor.
The Company’s leasing activities are as follows (in thousands):
|
|
For the Year Ended, |
|
||||
|
|
2025 |
|
2024 |
|
||
Operating lease cost |
|
$ |
348 |
|
$ |
347 |
|
Short-term lease cost |
|
|
- |
|
|
- |
|
Total lease cost |
|
$ |
348 |
|
$ |
347 |
|
|
|
For the Year Ended, |
|
||||
|
|
2025 |
|
2024 |
|
||
Other information: |
|
|
|
|
|
||
Cash paid for operating leases |
|
$ |
386 |
|
$ |
369 |
|
Weighted-average remaining lease term - operating lease |
|
|
2.84 |
|
|
2.32 |
|
Weighted-average discount rate - operating lease |
|
|
10 |
% |
|
10 |
% |
The future minimum lease payments as of December 31, 2025, were as follows (in thousands):
Year |
|
Related-Party Commitment |
|
|
2026 |
|
|
79 |
|
2027 |
|
|
83 |
|
2028 |
|
|
72 |
|
Total minimum lease payments |
|
$ |
234 |
|
Less: imputed interest |
|
$ |
(30 |
) |
Total lease liabilities |
|
$ |
204 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 13, 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.