Hyperscale Data, Inc. Leases Disclosure
15. LEASES
The Company has operating leases for office space. The Company’s leases have remaining lease terms of 0.1 years to 8.0 years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within one year.
The following table provides a summary of leases by balance sheet category as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | |||||||
| Operating right-of-use assets | $ | 6,651,000 | $ | 3,697,000 | ||||
| Operating lease liability - current | 1,776,000 | 1,627,000 | ||||||
| Operating lease liability - non-current | 5,198,000 | 2,269,000 | ||||||
The components of lease expenses for the years ended December 31, 2025 and 2024, were as follows:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease cost | $ | 1,936,000 | $ | 1,918,000 | ||||
| Short-term lease cost | ||||||||
The following tables provides a summary of other information related to leases for the years ended December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 1,970,000 | $ | 1,654,000 | ||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 1,612,000 | $ | 2,080,000 | ||||
| Weighted-average remaining lease term - operating leases | 4.1 years | 3.2 years | ||||||
| Weighted-average discount rate - operating leases | 9.0 | % | 8.0 | % | ||||
Maturity of lease liabilities under the Company’s non-cancellable operating leases as of December 31, 2025, were as follows:
| Payments due by period | |||||
| 2026 | $ | 2,279,000 | |||
| 2027 | 2,014,000 | ||||
| 2028 | 1,746,000 | ||||
| 2029 | 1,106,000 | ||||
| 2030 | 756,000 | ||||
| Thereafter | 326,000 | ||||
| Total lease payments | 8,227,000 | ||||
| Less interest | (1,270,000 | ) | |||
| Present value of lease liabilities | $ | 6,957,000 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Apr 16, 2024 | |
| 2022 | Apr 17, 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.