FG Nexus Inc. Leases Disclosure
Note 17. Leases
The following tables present the Company’s lease costs and other lease information (dollars in thousands):
| Year Ended | ||||||||
| Lease cost | December 31, 2024 | December 31, 2023 | ||||||
| Finance lease cost: | ||||||||
| Amortization of right-of-use assets | $ | 265 | $ | 183 | ||||
| Interest on lease liabilities | 103 | 94 | ||||||
| Operating lease cost | 287 | 162 | ||||||
| Net lease cost | $ | 655 | $ | 439 | ||||
| Year Ended | ||||||||
| Other information | December 31, 2024 | December 31, 2023 | ||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from finance leases | $ | 103 | $ | 94 | ||||
| Operating cash flows from operating leases | $ | 241 | $ | 131 | ||||
| Financing cash flows from finance leases | $ | 261 | $ | 159 | ||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 168 | $ | 775 | ||||
| As
of December 31, 2024 | ||||
| Weighted-average remaining lease term - finance leases (years) | 1.7 | |||
| Weighted-average remaining lease term - operating leases (years) | 1.8 | |||
| Weighted-average discount rate - finance leases | 9.3 | % | ||
| Weighted-average discount rate - operating leases | 5.0 | % | ||
The following table presents a maturity analysis of the Company’s operating and finance lease liabilities as of December 31, 2024 (in thousands):
| Operating Leases | Finance Leases | |||||
| 2025 | $ | 152 | $ 642 | |||
| 2026 | 81 | 510 | ||||
| 2027 | 14 | 112 | ||||
| Total lease payments | 247 | 1,264 | ||||
| Less: Amount representing interest | (11 | ) | (128) | |||
Lease obligations |
$ | 236 | $ 1,136 | |||
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.