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, 2025 and 2024, were as follows:

 

   

Year Ended December 31,

 

(in thousands)

 

2025

   

2024

 

Operating lease cost

  $ 2,163     $ 2,049  

Short-term lease cost

    170       191  

Sublease income

    -       (68 )

Total lease cost

  $ 2,333     $ 2,172  

 

Supplemental balance sheet information related to the Company’s operating leases is as follows:

 

   

December 31,

 

(in thousands)

 

2025

   

2024

 

Operating lease right-of-use assets

  $ 7,172     $ 6,132  
                 

Current portion, operating lease liabilities

  $ 1,525     $ 1,158  

Operating lease liabilities, long-term

    6,882       6,381  

Total operating lease liabilities

  $ 8,407     $ 7,539  
                 

Weighted average remaining lease term (years)

    4.2       5.2  

Weighted average discount rate

    7.9 %     8.9 %

 

Supplemental cash flow information related to the Company’s operating leases is as follows:

 

   

Year Ended December 31,

 

(in thousands)

 

2025

   

2024

 

Cash paid for amounts included in the measurement of lease liabilities

  $ 2,435     $ 2,186  

Right-of-use assets obtained in exchange for lease obligations

    2,283       2,945  

 

Future minimum lease payments for operating leases, with initial terms in excess of one year at December 31, 2025, are as follows:

 

Year Ending December 31,

       

(in thousands)

       

2026

  $ 2,333  

2027

    2,412  

2028

    2,324  

2029

    2,073  

2030

    865  

Thereafter

    -  

Total lease payments

    10,007  

Less imputed interest

    (1,600 )

Total operating lease liabilities

  $ 8,407  

 

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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 14, 2025
2023Mar 7, 2024
2022Mar 9, 2023
2021Mar 11, 2022
2020Mar 12, 2021
2019Mar 16, 2020
2018Mar 18, 2019
2017Mar 16, 2018
2016Mar 17, 2017
2015Apr 29, 2016

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.