LanzaTech Global, Inc.LNZA

LanzaTech Global, Inc. Leases Disclosure

10-KFiled Apr 15, 20252 min read
Leases
The Company leases certain office space and laboratory facilities. The Company’s lease agreements typically do not contain any significant guarantees of asset values at the end of a lease, renewal options or restrictive covenants. Pursuant to ASC 842, Leases, all leases are classified as operating leases.
Total operating lease costs and variable lease costs for the years ended December 31, 2024 and 2023 were $3,641 and $2,702 and $3,703 and $3,205, respectively. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2024 and 2023 was $1,058 and $1,857, respectively.
As of December 31, 2024, lease payments for operating leases for the Company’s office facility and laboratories was as follows (in thousands):
Year ending December 31,
2025$(76)
202699 
20274,646 
20284,612 
20294,715 
Thereafter36,913 
Total future lease payments
$50,909 
Less: imputed interest20,132 
Total lease liabilities$30,777 
The following is a summary of weighted average remaining lease term and discount rate for all of the Company’s operating leases:
Years Ended December 31,
20242023
Weighted average remaining lease term (years)12.012.7
Weighted average discount rate7.50 %7.50 %
Lessor accounting
In May 2020, the Company executed an agreement to lease certain land to a subsidiary of LanzaJet for a period of 10 years with an option to renew this lease for five additional periods of one year with minimum annual rent due. This agreement is accounted for as an operating lease. Through August 2024, the lease was amended three times to modify the scope of the renting areas, increase the annual rent and increase the term from 10 years to 12 years with an option to renew this lease for thirteen additional periods of one year. The Company recognizes lease revenue on a straight-line basis over the life of the lease agreement. For the year ended December 31, 2024, we recognized $155 of revenue included in revenue from related party transactions in the consolidated statements of
operations. The future minimum lease payments owed to the Company from the lease agreement at December 31, 2024, was as follows (in thousands):
Year ending December 31,
2025$155 
2026155 
2027155 
2028155 
2029155 
Thereafter932 
Total
$1,707 

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.

Other Available Disclosures

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