NOTE 5. LEASES

 

Greenlane as a Lessee

 

As of December 31, 2025, we had facilities financed under operating leases consisting of a warehouse combined with an office with lease term expirations in 2026. Lease terms are generally three to seven years for warehouses and office space. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

The following table provides details of our future minimum lease payments under operating lease liabilities recorded in our consolidated balance sheet as of December 31, 2025. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.

 

(in thousands)  Operating Leases 
2026   170 
Total minimum lease payments  $170 
Less: imputed interest   (4)
Present value of minimum lease payments  $166 
Less: current portion   166 
Long-term portion  $- 

 

Rent expense under operating leases was approximately $1.4 million and $1.4 million for the years ended December 31, 2025 and 2024, respectively.

 

The following expenses related to our operating leases were included in “general and administrative expenses” within our consolidated statements of operations and comprehensive loss:

 

(in thousands)  2025   2024 
   For the year ended December 31, 
(in thousands)  2025   2024 
Operating lease cost  $912   $912 
Variable lease cost   520    440 
Total lease cost  $1,432   $1,352 

 

 

The table below presents the terms and discount rates of the Company’s operating leases as of December 31, 2025:

 

   2025   2024 
Weighted average remaining lease terms   0.5 years    1.0 years 
Weighted average discount rate   2.3%   2.3%

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 21, 2025
2023Jul 19, 2024
2022Mar 31, 2023
2021Mar 31, 2022
2020Mar 31, 2021
2019Apr 24, 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.