Note 14 — Leases

Operating leases

The Company leases consist of operating leases related to corporate offices and production facilities. Supplemental Consolidated Balance Sheet information for operating leases on December 31, 2024, and 2023, is as follows:

    

December 31, 

2024

    

2023

Assets

Right-of-use assets, net

$

134

$

129

Liabilities

 

Right-of-use liabilities, current

138

 

138

Components of operating lease cost for the twelve months ending December 31, 2024, and 2023:

    

December 31, 

2024

    

2023

Components operating lease cost

 

  

Operating lease cost

$

166

$

134

Short-term leases

30

 

40

For the years ended December 31, 2024, and 2023, the Company incurred operating lease expense totaling $196 and $174, respectively, and operating lease expense was recognized on a straight-line basis over the term of the lease. Remaining operating lease term and discounted rates as of December 31, 2024, and 2023, are as follows:

    

December 31, 

 

2024

    

2023

Weighted-average remaining lease term (years)

 

0.9

0.9

Weighted-average discount rate

 

8

%

8

%

Supplemental cash flow information related to leases for the twelve months ending December 31, 2024, and 2023, is as follows:

    

December 31, 

2024

    

2023

Right of use assets obtained in exchange for lease liabilities

$

182

$

376

Cash paid for amounts included in the measurement of lease liabilities

166

 

163

Operating lease payments

30

 

40

Maturities of operating lease liabilities for continuing operations are as follows:

For the twelve months ending December 31, 

    

  

2025

$

138

2026

 

2027

 

2028

 

2029

 

Thereafter

 

Total operating lease payments

$

138

Less: imputed interest

 

Present value of operating lease liabilities

$

138

Historical Timeline

Fiscal YearFiled
2024Mar 28, 2025Showing above
2023Mar 29, 2024

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.