Laird Superfood, Inc. Leases Disclosure

8.

Leases

 

Lessee

 

The Company assumed an operating lease in the acquisition of Picky Bars, LLC on May 3, 2021. The initial lease term was 62 months. The lease was terminated, without penalty, effective October 31, 2024. 

 

The Company entered into a sublease agreement with Somatic Experiencing Trauma Institute with a commencement date of January 1, 2023, for a 5,257 square foot office space in Boulder, Colorado which serves as the Company’s new headquarters. This lease will expire on July 1, 2027.

 

The components of lease expense were as follows:

 

		Year Ended
		December 31, 2025				December 31, 2024
Operating leases
Operating lease cost		$	92,237			$	142,321
Variable lease cost			—				19,504
Operating lease expense			92,237				161,825
Short-term lease rent expense			502,865				317,792
Total rent expense		$	595,102			$	479,617

 

		December 31, 2025				December 31, 2024
Weighted-average remaining lease term – operating leases (in years)			1.5				2.5
Weighted-average discount rate – operating leases			7.50	%			7.50	%

 

As of December 31, 2025, future minimum payments during the next two years are as follows:

 

2026			109,145
2027			56,210
Total			165,355
Less imputed interest			(9,480	)
Operating lease liabilities		$	155,875

 

Lessor

 

The Company executed a sublease agreement of the Picky Bars, LLC operating lease on March 1, 2022. The lease commenced on April 1, 2022. The initial lease term expired on April 30, 2025. The sublease was terminated, without penalty, effective October 31, 2024. The lease met all of the criteria of an operating lease and was accordingly recognized straight line over the lease term with a related sublease rental asset accounting for abatements and initial direct costs. 

 

The components of rental income were as follows:

 

		Year Ended
		December 31, 2024
Operating leases
Operating lease income		$	46,849
Variable lease income			17,722
Total rental income		$	64,571