Greenland Technologies Holding Corp. Leases Disclosure
NOTE 15 – LEASES
The Company leases its assembly site under operating leases, with initial terms of 5.58 years. Usually within four months prior to the expiration date of a lease, the Company is required to notify the lessor and has a priority to continue renting the lease property if a lessor intends to lease property. The lease itself does not have restrictions or covenants. Any damage, if made by the lessee, to the property and equipment within the property has to been fixed or reimbursed by the lessee. As of December 31, 2025, this lease was terminated and no longer has any right-of-use asset or lease liability outstanding.
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 is as follows:
| As of | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Assets: | ||||||||
| Right-of-use assets | $ | $ | 1,624,290 | |||||
| Liabilities: | ||||||||
| Lease liabilities | $ | $ | 516,673 | |||||
| Lease liabilities | 1,167,941 | |||||||
| Total operating lease liabilities | $ | $ | 1,684,614 | |||||
| Lease term and discount rate | ||||||||
| Weighted average remaining lease term (in years) | 2.92 | |||||||
| Weighted average discount rate | 4.36 | |||||||
The following summarizes the components of operating lease expense and provides supplemental cash flow information for operating leases:
For the years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Components of lease expense: | ||||||||
| Operating lease expense | $ | 254,594 | $ | 419,315 | ||||
| Total lease expense | $ | 254,594 | $ | 419,315 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Apr 16, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 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.