T3 Defense Inc. Leases Disclosure
NOTE 8 – LEASES
| A. | The components of operating lease cost for the years ended December 31, 2025 and Three month ended December 31, 2024 and for the year ended September 30, 2024 were as follows: |
| Year ended | Three months ended | Year ended | ||||||||||
| December 31 | December 31, | September 30, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Operating lease costs | 39 | |||||||||||
| B. | Supplemental cash flow information related to operating leases was as follows: |
| Year ended | Three months ended | Year ended | ||||||||||
| December 31 | December 31, | September 30, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||
| Operating cash flows from operating leases | 240 | |||||||||||
| Right-of-use assets obtained in exchange for lease obligations (non-cash): | ||||||||||||
| Operating leases | 695 | |||||||||||
| C. | Supplemental balance sheet information related to operating leases was as follows: |
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating leases: | ||||||||
| Operating leases right-of-use asset | 823 | |||||||
| Current operating lease liabilities | 504 | |||||||
| Non-current operating lease liabilities | 143 | |||||||
| Total operating lease liabilities | 647 | |||||||
| - | ||||||||
| Weighted average remaining lease term (years) | 2.6 | |||||||
| Weighted average discount rate | 10.7 | % | ||||||
| D. | Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows: |
| 2025 | ||||
| 2026 | 257 | |||
| 2027 | 262 | |||
| 2028 | 185 | |||
| Total operating lease payments | 704 | |||
| Less: imputed interest | (57 | ) | ||
| Present value of lease liabilities | 647 | |||
On December 15, 2025, the Company entered into a new lease agreement for office space in Netanya, Israel for a period of 1 year with monthly payments of $1 and an option to extend the agreement for an additional 1 year with at a 5% increase in the monthly payments. A lease right-of-use asset and a related liability in the amount of $16 have been recognized in the balance sheet in respect of this lease.
In December 2025 the Subsidiary exercised its extension option of a lease agreement for the office space in 2 Granit, Petach-Tikva, Israel for a term of one year. The quarterly lease payments under the lease agreement are approximately NIS 106 (approximately $33).
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.