FUEL TECH, INC. Leases Disclosure
10. LEASES
The terms of the Company’s two primary office space lease arrangements are as follows:
| • | The Gallarate, Italy building lease, for approximately 1,335 square feet, runs through April 30, 2031. This facility serves as the operating headquarters for our European operations. |
| • | The Aurora, IL warehouse lease, for approximately 11,000 square feet, runs through March 31, 2031. This facility serves as an outside warehouse facility. |
The Company also has additional operating leases related to certain office equipment and one short-term lease. Our leases have remaining lease terms of 3.3 years to 5.3 years. Our leases do not contain any material residual value guarantees or material restricted covenants and we currently have no material sublease arrangements. We have no financing leases as defined under ASC 842.
Total operating lease expense is as follows:
| 2025 | 2024 | |||||||
| Operating lease cost | $ | 185 | $ | 180 | ||||
| Short-term lease cost | 5 | 9 | ||||||
| Total lease cost | $ | 190 | $ | 189 |
The weighted average remaining lease terms were 5.25 years and 6.18 years as of December 31, 2025 and 2024, respectively. The weighted average discount rates were 8.27% and 8.25% as of December 31, 2025 and 2024, respectively.
Remaining maturities of our existing lease liabilities as of December 31, 2025 were as follows:
| Year Ending December 31, | Operating Leases | |||
| 2026 | $ | 133 | ||
| 2027 | 136 | |||
| 2028 | 136 | |||
| 2029 | 134 | |||
| 2030 | 137 | |||
| Thereafter | 37 | |||
| Total lease payments | $ | 713 | ||
| Less imputed interest | (133 | ) | ||
| Total | $ | 580 | ||
The following is the balance sheet classification of our existing lease liabilities:
| 2025 | 2024 | |||||||
| Operating lease liabilities - current | $ | 89 | $ | 77 | ||||
| Operating lease liabilities - non-current | 491 | 548 | ||||||
| Total operating lease liabilities | $ | 580 | $ | 625 | ||||
Supplemental cash flow information related to leases was as follows:
| For the Twelve Months ended December 31, 2025 | For the twelve months ended December 31, 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | 135 | $ | 132 | ||||
| Leased assets obtained in exchange for operating lease liabilities | 26 | 95 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 12, 2020 | |
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.