Envela Corp Leases Disclosure
NOTE 11 — LEASES
The following table depicts the Company’s future annual minimum leases payments as of December 31, 2025:
| Operating | ||
Leases | |||
Consumer |
| | |
2026 | $ | 1,130,777 | |
2027 |
| 887,803 | |
2028 |
| 652,641 | |
2029 |
| 533,234 | |
2030 |
| 203,190 | |
Thereafter |
| - | |
Total minimum lease payments |
| 3,407,645 | |
Less: imputed interest |
| (268,790) | |
Sub-total |
| 3,138,855 | |
Commercial |
| | |
2026 |
| 1,280,989 | |
2027 |
| 1,453,169 | |
2028 |
| 1,476,504 | |
2029 |
| 1,535,564 | |
2030 |
| 1,596,986 | |
Thereafter |
| 550,061 | |
Total minimum lease payments |
| 7,893,273 | |
Less: imputed interest |
| (1,098,266) | |
Sub-total |
| 6,795,007 | |
Total |
| 9,933,862 | |
Less: current portion |
| 1,937,295 | |
$ | 7,996,567 | ||
All of the Company’s leased facilities, as of December 31, 2025, are non-cancellable. The leases are a combination of triple net leases, for which the Company pays its proportionate share of common area maintenance, property taxes, and property insurance, and modified gross leases, for which the Company directly pays for common area maintenance and property insurance. Lease costs are comprised of a combination of minimum lease payments and variable lease costs.
The following table depicts supplemental cash flow information related to operating leases:
Year Ended December 31, | ||||||
| 2025 | | 2024 | |||
Non-cash activities: right-of-use operating lease assets obtained in exchange for new operating lease liabilities | $ | 7,235,358 | $ | 2,341,024 | ||
The following table depicts the Company’s leasing costs for the years ended December 31, 2025 and 2024:
Year Ended December 31, | ||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
Consumer | | Commercial | | Consolidated | Consumer | | Commercial | | Consolidated | |||||||||
Operating lease cost | $ | 1,117,351 | $ | 1,448,929 | $ | 2,566,280 | $ | 747,356 | $ | 1,357,709 | $ | 2,105,065 | ||||||
Variable lease cost |
| 242,983 | 477,629 |
| 720,612 |
| 217,362 | 590,599 |
| 807,961 | ||||||||
Short-term lease cost | 32,153 | 150,258 | 182,411 | 167,550 | 179,877 | 347,427 | ||||||||||||
| ||||||||||||||||||
$ | 1,392,487 | $ | 2,076,816 | $ | 3,469,303 | $ | 1,132,268 | $ | 2,128,185 | $ | 3,260,453 | |||||||
As of December 31, 2025, the weighted average remaining lease term and weighted average discount rate for operating leases were 4.6 years and 5.1%. As of December 31, 2024, the weighted average remaining lease term and weighted average discount rate for operating leases were 3.0 years and 3.9%.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 23, 2021 | |
| 2019 | Mar 26, 2020 | |
| 2018 | Apr 12, 2019 | |
| 2017 | Mar 21, 2018 | |
| 2016 | Apr 14, 2017 | |
| 2015 | Mar 30, 2016 | |
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.