PLAYSTUDIOS, Inc.MYPS

PLAYSTUDIOS, Inc. Leases Disclosure

10-KFiled Mar 14, 20251 min read
NOTE 13—LEASES
The Company's operating leases primarily consist of real estate leases such as offices. Our leases have remaining terms of approximately less than one year to four years. During the years ended December 31, 2024 and December 31, 2023, operating lease expense was $4.6 million and $4.8 million, respectively. We do not have any finance leases. Our total variable and short-term lease payments were immaterial for all periods presented.
On June 30, 2024, the Company renewed its lease of office space located in Tel Aviv, Israel. The original lease term was set to expire on December 31, 2024. The renewed lease term extends for an additional three years through December 31, 2027. As a result of the lease renewal, the Company recognized an additional right-of-use asset and lease liability of $3.4 million.
Supplemental balance sheet information related to operating leases are as follows:

December 31, 2024December 31, 2023
Operating lease right-of-use assets, net$9,703$9,369
Operating lease liabilities, current3,4054,236
Operating lease liabilities, noncurrent6,6595,699
Operating lease liabilities, total$10,064$9,935
Weighted average remaining lease term, years2.93.1
Weighted average discount rate6.1 %4.5 %

Operating lease liability maturities:
Year ending December 31, Operating Leases
2025$3,936 
20263,705 
20272,945 
2028 and thereafter382 
Total undiscounted cash flows$10,968 
Less: imputed interest$(904)
Lease liabilities, total$10,064 
As of December 31, 2024, we did not have material additional operating leases that have not yet commenced.

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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