GAIA, INC Leases Disclosure
7. Leases
In connection with the sale of a portion of our corporate campus as further discussed in Note 8 to the consolidated financial statements, we leased the property pursuant to a master lease which was amended effective December 8, 2025 (together, the “Lease Amendment”). The Lease Amendment, among other things, extended the term through September 30, 2035, with two five-year extensions. The extension options are not recognized as part of the right-of-use asset and lease liability. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the lease term. At December 31, 2025, the weighted average remaining lease term was 9.75 years and the weighted average discount rate was 5.090%.
Because the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:
|
|
As of December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Operating right-of-use asset, net |
|
$ |
8,836 |
|
|
$ |
5,454 |
|
|
|
|
|
|
|
|
||
Operating lease liability, current portion |
|
$ |
614 |
|
|
$ |
839 |
|
Operating lease liability, net of current portion |
|
|
8,501 |
|
|
|
4,869 |
|
|
|
$ |
9,115 |
|
|
$ |
5,708 |
|
|
|
For the Year Ended December 31, |
|
|||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||
Cash paid for operating lease liabilities |
|
$ |
1,035 |
|
|
$ |
1,001 |
|
Operating lease expense is recognized on a straight-line basis over the lease term. Our operating lease expense was $1.1 million for both 2025 and 2024. Future amortization of our lease liability as of December 31, 2025 is expected to be as follows:
(in thousands) |
|
|
|
|
2026 |
|
$ |
1,064 |
|
2027 |
|
|
1,093 |
|
2028 |
|
|
1,123 |
|
2029 |
|
|
1,154 |
|
2030 |
|
|
1,186 |
|
Thereafter |
|
|
6,088 |
|
Future lease payments, gross |
|
|
11,708 |
|
Less: Imputed interest |
|
|
(2,593 |
) |
Operating lease liability |
|
$ |
9,115 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 2, 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.