NOTE 10 – LEASES

 

The Company has operating lease agreements with terms up to 3 years, including car and office space leases.

 

The components of operating lease costs were as follows:

 SCHEDULE OF OPERATING LEASE COSTS

         
   Year Ended December 31, 
   2025   2024 
Fixed lease cost  $124   $61 
Variable lease cost   3    1 
           
Total net lease costs  $127   $62 

 

The following table presents supplemental cash flows information related to the lease costs for operating leases:

 

    Year Ended
December 31,
 
    2025  
Cash paid for amounts included in measurement of lease liabilities:      
Operating cash flows for operating leases   $                 85  

 

The Company’s weighted-average remaining lease term relating to its operating leases is 2.21 years, with a weighted-average discount rate of 10%.

 

The following table presents information about the amount and timing of liabilities arising from the Company’s operating leases as of December 31, 2025:

  

      
2026  $93 
2027   29 
2028   5 
Total undiscounted operating lease payments   127 
Less: Imputed interest   10 
Present value of operating lease liabilities  $117 

 

Sales-type Lease

 

Revenue from sales-type leases is presented on a gross basis when the Company enters into a lease to realize value from a product that it would otherwise sell in its ordinary course of business. The Company’s leases generally do not provide for a residual value guarantee. The Company’s lease arrangements are generally comprised of fixed lease payments and do not include options to purchase the underlying assets and to extend or terminate the lease.

 

Interest income for the year ended December 31, 2025 was immaterial.

 

For the year ended December 31, 2025, the Company recognized $43 of revenue from sales-type lease agreements and $36 cost of revenue. The Company’s short -term net investment in a lease receivable as of December 31, 2025 was $20 and is presented within trade receivables in the consolidated balance sheets. The Company’s long -term net investment in a lease receivable as of December 31, 2025 was $20 and is presented within long-term trade receivables in the consolidated balance sheets.

 

The following table illustrates the Group’s future sales-type lease receipts as of December 31, 2025:

 

 SCHEDULE OF SALES-TYPE LEASE

      
Year ending December 31,   
2026  $20 
2027   20 
Total future minimum receipts  $40 

 

 

ENVUE MEDICAL, INC.

Notes to Consolidated Financial Statements

(Amounts in thousands except share and per share data)

 

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2024Mar 31, 2025
2023Apr 8, 2024
2022Apr 17, 2023
2021Apr 15, 2022
2020Apr 15, 2021

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.