FiEE, Inc. Leases Disclosure
(6) LEASES
The Company’s newly established Hong Kong subsidiary executed new office lease agreements in March 2025 and the Company’s newly acquired Japan subsidiary executed office lease agreements since October 2024, which expire in July and September 2026, respectively. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less.
The components of lease expenses were as follows:
| Years ended December 31, |
||||||||
| 2025 | 2024 | |||||||
| Operating lease costs | $ | 51,978 | $ | 22,512 | ||||
| Short-term lease costs | 14,050 | |||||||
| Total lease costs | $ | 51,978 | $ | 36,562 | ||||
| Cash paid for amounts included in the measurement of lease liabilities | 57,786 | 22,512 | ||||||
The weighted-average remaining lease term and discount rate were as follows:
| Years ended December 31, |
||||||||
| 2025 | 2024 | |||||||
| Operating leases: | ||||||||
| Weighted average remaining lease term (years) | 0.51 | 0.0 | ||||||
| Weighted average discount rate | 4.63 | % | 0.0 | % | ||||
The Company leased office space from an affiliate entity owned by the Company’s former Chairman of the Board. The lease expired and was not renewed in the first quarter of 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 20, 2026 | Showing above |
| 2024 | Apr 10, 2025 | |
| 2023 | Apr 12, 2024 | |
| 2022 | Mar 31, 2023 | |
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.