MAUI LAND & PINEAPPLE CO INC Leases Disclosure
| 15. | LONG TERM LEASES |
As of December 31, 2025, the company’s lease portfolio consists of operating leases (office equipment and vehicles) and finance lease (heavy equipment).
The following table summarized the classification of leases on the Balance Sheet as of December 31, 2025 and 2024:
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Assets | ||||||||
|
| $ | 216 | $ | 24 | ||||
|
| 302 | - | ||||||
| Total Lease Assets | $ | 518 | $ | 24 | ||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Liabilities | ||||||||
| Current | ||||||||
|
| $ | 35 | $ | 12 | ||||
|
| 71 | - | ||||||
| Total Lease Liabilities - Current | $ | 106 | $ | 12 | ||||
| Non-Current | ||||||||
|
| 181 | 12 | ||||||
|
| 232 | - | ||||||
| Total Lease Liabilities - Non-Current | $ | 413 | $ | 12 | ||||
The company used weighted-average discount rate of 4.50%. The weighted-average remaining lease term for operating leases is 4.8 years. The weighted-average reaming lease term for the finance lease is 3.3 years.
The following table projects the undiscounted cash flows for lease liabilities over the remaining five years:
| Operating Leases | Finance Lease | |||||||
| 2026 | $ | 52 | $ | 82 | ||||
| 2027 | 50 | 82 | ||||||
| 2028 | 50 | 82 | ||||||
| 2029 | 50 | 82 | ||||||
| 2030 | 39 | - | ||||||
| Total lease payments | 241 | 328 | ||||||
| Less: imputed interest | (18 | ) | (32 | ) | ||||
| Total lease liability | $ | 223 | $ | 296 | ||||
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.