DSS, INC. Leases Disclosure
13. LEASE LIABILITIES
The Company has operating leases predominantly for operating facilities. As of December 31, 2025, the remaining lease terms on our operating leases range from less than one to eleven years. Renewal options to extend our leases have not been exercised due to uncertainty. Termination options are not reasonably certain of exercise by the Company. There is no transfer of title or option to purchase the leased assets upon expiration. There are no residual value guarantees or material restrictive covenants. There are no significant finance leases as of December 31, 2025.
Future minimum lease payments as of December 31, 2025, are as follows:
Maturity of Lease Liability:
| Totals | ||||
| 2026 | $ | 839,000 | ||
| 2027 | 808,000 | |||
| 2028 | 824,000 | |||
| 2029 | 840,000 | |||
| 2030 | 857,000 | |||
| thereafter | 3,217,000 | |||
| Total lease payments | 7,385,000 | |||
| Less imputed interest | (1,082,000 | ) | ||
| Present value of remaining lease payments | $ | 6,303,000 | ||
| Current | $ | 611,000 | ||
| Non-current | $ | 5,692,000 | ||
| Weighted average remaining lease term (years) | 8.7 | |||
| Weighted average discount rate | 3.8 | % | ||
| Cash payments made YTD | $ | 861,000 | ||
Total cash paid during the years ended December 31, 2025 and 2024 approximated $861,000 and $956,000, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2023 | Mar 27, 2024 | |
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.