HARVARD BIOSCIENCE INC Leases Disclosure
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9. |
Leases |
The Company has non-cancelable operating leases for office space, manufacturing facilities, warehouse space, automobiles and equipment expiring at various dates through 2030.
The components of lease expense for the years ended December 31, 2024 and 2023, were as follows:
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Year Ended December 31, |
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(in thousands) |
2024 |
2023 |
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Operating lease cost |
$ | 2,049 | $ | 2,013 | ||||
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Short-term lease cost |
191 | 199 | ||||||
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Sublease income |
(68 | ) | (102 | ) | ||||
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Total lease cost |
$ | 2,172 | $ | 2,110 | ||||
Supplemental balance sheet information related to the Company’s operating leases is as follows:
|
December 31, |
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|
(in thousands) |
2024 |
2023 |
|||
|
Operating lease right-of-use assets |
$ |
6,132 |
$ |
4,773 |
|
|
Current portion, operating lease liabilities |
$ |
1,158 |
$ |
1,416 |
|
|
Operating lease liabilities, long-term |
6,381 |
4,794 |
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|
Total operating lease liabilities |
$ |
7,539 |
$ |
6,210 |
|
|
Weighted average remaining lease term (years) |
5.2 |
5.7 |
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|
Weighted average discount rate |
8.9% |
9.5% |
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Supplemental cash flow information related to the Company’s operating leases is as follows:
|
Year Ended December 31, |
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|
(in thousands) |
2024 |
2023 |
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|
Cash paid for amounts included in the measurement of lease liabilities |
$ | 2,186 | $ | 2,367 | ||||
|
Right-of-use assets obtained in exchange for lease obligations |
2,945 | 293 | ||||||
Future minimum lease payments for operating leases, with initial terms in excess of one year at December 31, 2024, are as follows:
|
Year Ending December 31, |
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|
(in thousands) |
||||
|
2025 |
$ | 1,783 | ||
|
2026 |
1,802 | |||
|
2027 |
1,779 | |||
|
2028 |
1,770 | |||
|
2029 |
1,575 | |||
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Thereafter |
833 | |||
|
Total lease payments |
9,542 | |||
|
Less imputed interest |
(2,003 | ) | ||
|
Total operating lease liabilities |
$ | 7,539 |
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.