EDAP TMS SA Leases Disclosure
8— OPERATING LEASE RIGHT-OF-USE ASSETS
Operating lease right-of-use assets consist of the following:
December 31, | ||||
| 2025 | | 2024 | |
Facilities |
| 2,701 |
| 2,425 |
Equipment |
| 11 |
| 11 |
Furniture, fixture, and fittings and other |
| 399 |
| 217 |
Total net operating lease right of use |
| 3,111 |
| 2,653 |
Operating lease cost amounted to $1,238 thousand and $1,047 thousand for the years ended December 31, 2025 and 2024, respectively.
Variable lease costs related to above contracts amounted to $169 thousand and $196 thousand for the years ended December 31, 2025 and 2024, respectively.
Non-recognized lease liabilities for short term leases amounted to $78 thousand and $71 thousand for the years ended December 31, 2025 and 2024, respectively.
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.