LGL GROUP INC Leases Disclosure
The Company leases certain manufacturing and office space and equipment. We determine if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration. Amounts associated with operating leases, which are not short-term, are included in right-of-use lease assets. Current lease liabilities are included in other accrued expenses and long-term lease liabilities are included in other liabilities in our consolidated balance sheets. Right-of-use lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our incremental borrowing rate at the lease commencement date in determining the present value of lease payments. Short-term leases, leases with an initial term of 12 months or less, are not recorded in the Consolidated Balance Sheets; we recognize lease expense for these short-term leases on a straight-line basis over the lease term.
The Company leases certain property and equipment under operating leases with terms that range from to years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Total operating lease costs amounted to $85 and $95 for the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025 and 2024, our total lease obligation was $247 and $75, respectively, of which the current portion of $69 and $61, respectively, was included in on the Consolidated Balance Sheets. The weighted average discount rate for the years ended December 31, 2025 and 2024 was 5.8% and 6.9%, respectively. As of December 31, 2025 and 2024, the weighted average remaining lease term was 4.0 years and 1.0 year, respectively.
Future minimum lease payment obligations under operating leases are as follows:
| 2026 | $ | 76 | ||
| 2027 | 76 | |||
| 2028 | 76 | |||
| 2029 | 76 | |||
| Total lease payments | 304 | |||
| Less: interest | (57 | ) | ||
| Net lease payments | $ | 247 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 30, 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.