Nano Dimension Ltd. Leases Disclosure
Note 13 – Leases
Information regarding the Company's material operating lease agreements is as follows:
Vehicle leases
The Company leases vehicles for approximately three-year periods from several different leasing companies and from time to time changes the number of leased vehicles according to its current needs. The leased vehicles are identified by means of license numbers and the vehicle’s registration, with the leasing companies not being able to switch vehicles, other than in cases of deficiencies. The leased vehicles are used by the Company’s headquarters staff, marketing and salespersons and other employees whose employment agreements include an obligation of the Company to put a vehicle at their disposal.
Office leases
The Company leases offices in Ness-Ziona, Israel for a contractual period of up to five years under a few different contracts for different floors used for offices, labs and manufacturing facilities. The contractual periods of the aforesaid lease agreements end in September 2026, November 2026 and July 2027. The Company also leases offices in Tel Aviv, Israel, for a contractual period of five years, which ends in March 2027, offices in Waltham, Massachusetts, U.S., for a contractual period of seven years, which ends in February 2029, in Munich, Germany for a contractual period of five years, which ends in December 2027 and, in Alkmaar and Goirle, Netherlands for a contractual period of and seven years, which end in April 2028 and April 2029, respectively.
The lease payments in some of the Company’s leases in Israel and Germany are linked to the local consumer price indexes known on the lease’s date of inception.
The Company exited their previous U.S. headquarters at 300 5th Avenue, Waltham, Massachusetts and sublet the facility leading to a non-cash, pre-tax and after-tax impairment charge of $1.5 million recorded in the second quarter of 2025. The Company partially impaired an abandoned portion of the Markforged 60 Tower headquarters in Waltham, Massachusetts resulting in a non-cash, pre-tax and after-tax impairment charge of $5.7 million related to the operating lease right-of-use (“ROU”) asset recorded in the third quarter of 2025. The Company is currently seeking a sublease for this space.
The following summarizes information about the Company’s operating lease costs:
|
|
For the year ended December 31, |
|
|||||||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease costs |
|
$ |
5,729 |
|
|
$ |
4,455 |
|
|
$ |
4,809 |
|
Variable lease costs |
|
|
2,235 |
|
|
|
249 |
|
|
|
268 |
|
Finance expense (income) |
|
|
75 |
|
|
|
(220 |
) |
|
|
— |
|
Total |
|
$ |
8,039 |
|
|
$ |
4,484 |
|
|
$ |
5,077 |
|
|
|
For the year ended December 31, |
|
|||||||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating cash flows for operating leases |
|
$ |
7,682 |
|
|
$ |
4,524 |
|
|
$ |
4,823 |
|
Weighted average remaining lease term |
|
|
5.2 |
|
|
|
3.1 |
|
|
|
4.0 |
|
Weighted average discount rate |
|
|
6.9 |
% |
|
|
6.9 |
% |
|
|
6.9 |
% |
Future minimum lease payments under the Company's operating leases for each of the following five years and thereafter are as follows as of December 31, 2025, excluding short-term leases:
($ in thousands) |
|
|
|
|
Year ended December 31, 2026 |
|
$ |
9,131 |
|
Year ended December 31, 2027 |
|
|
8,427 |
|
Year ended December 31, 2028 |
|
|
7,463 |
|
Year ended December 31, 2029 |
|
|
6,526 |
|
Year ended December 31, 2030 |
|
|
5,732 |
|
Thereafter |
|
|
4,375 |
|
Total future lease payments |
|
|
41,654 |
|
Less: Present value discount |
|
|
(9,408 |
) |
Minimum lease payments |
|
$ |
32,246 |
|
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.