MIMEDX GROUP, INC.MDXG

MIMEDX GROUP, INC. Leases Disclosure

10-KFiled Feb 25, 20262 min read
Leases
The Company has leases for corporate offices and manufacturing facilities. None of the Company’s leases require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees.
Supplemental balance sheet information related to the Company’s leases, including the financial statement caption in which the amounts are presented, is as follows (amounts in thousands, except lease term and discount rate):
Operating Leases
December 31,
20252024
Assets
Other assets$4,344$5,606
Liabilities
Other current liabilities$1,320$1,307
Other liabilities3,2454,705
Total liabilities$4,565$6,012
Weighted-average remaining lease term (years)3.44.3
Weighted-average discount rate6.9%6.9%
The Company had no finance lease obligations or associated right of use assets outstanding as of December 31, 2025.
Information related to lease costs are as follows (amounts in thousands):
Year Ended December 31,
202520242023
Operating lease cost
$1,625 $1,478 $1,532 
Amortization of finance lease ROU assets
— 51 47 
Interest expense on finance lease liabilities
— 2 7 
Maturities of lease liabilities are as follows (amounts in thousands):
Year Ending December 31,Operating Leases
2026$1,585 
20271,355 
20281,346 
2029794 
Thereafter— 
Total lease payments5,080 
Less: imputed interest(515)
Lease liability$4,565 
Asset Retirement Obligations
Certain lease agreements require the Company to return designated areas of leased space to its original condition upon termination of the lease agreement, for which the Company records an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $1.3 million and $1.2 million are included in other liabilities in the consolidated balance sheets as of both December 31, 2025 and 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Feb 28, 2022
2020Mar 8, 2021
2019Jul 6, 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.

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