Nutex Health Inc.NUTX

Nutex Health Inc. Leases Disclosure

10-KFiled Mar 5, 20263 min read
Leases
As Lessee
We have entered into hospital property, office and equipment rental agreements with various lessors including related parties. The following tables disclose information about our leases of property and equipment (in thousands):
Year Ended December 31,
202520242023
Operating lease cost$4,389 $2,070 $2,657 
Finance lease cost:
Amortization of right-of-use assets13,215 10,867 10,053 
Interest on lease liabilities20,777 16,686 12,100 
Total finance lease cost33,992 27,553 22,153 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases3,999 2,341 2,479 
Operating cash flows from finance leases20,777 16,203 12,131 
Financing cash flows from finance leases5,244 4,973 3,495 
Net cash paid for amounts included in the measurement of lease liabilities30,020 23,517 18,105 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases683 16,728 52 
Finance leases29,023 53,229 25,449 
Total right-of-use assets obtained in exchange for lease obligations$29,706 $69,957 $25,501 
Weighted average remaining lease term (years):
Operating leases17179
Finance leases222221
Weighted average discount rate:
Operating leases11%10%5%
Finance leases10%10%8%
For the year ended December 31, 2025, the Company opened two facilities throughout the year. For both facilities, the Company recognized financing right-of-use (ROU) assets of $14.2 million related to the hospital property and equipment leases entered into as a result of the openings.
For the year ended December 31, 2024, the Company opened four facilities throughout the year. For three facilities, the Company recognized financing right-of-use (ROU) assets of $53.2 million related to the hospital property and equipment leases entered into as a result of the openings. For one facility, we recognized operating ROU assets of $16.7 million related to the hospital property lease entered into as a result of the facility opening. The recognized operating ROU asset also increased the weighted average discount rate.
Due to the closures of two facilities in January 2023 and two facilities in January 2024, we remeasured the one lease associated with a facility, recording a reduction to financing lease liabilities and financing right-of-use assets of $11.4
million as of December 31, 2023. After remeasurement, we recognized an impairment loss of $24.6 million for the year ended December 31, 2023 for the remaining carrying value of the right-of-use assets associated with the four facilities.
The following table shows minimum lease payments for the next five years (in thousands):
Operating leasesFinance leases
Minimum lease payments for the next five years:Third-partiesRelated partiesThird-partiesRelated parties
2026$2,112 $2,208 $6,201 $20,433 
20272,138 2,265 4,793 20,813 
20282,185 2,324 4,537 21,202 
20291,930 2,384 4,432 21,600 
20301,532 2,446 3,940 22,008 
Thereafter3,491 54,398 43,587 546,420 
Total minimum lease payments13,388 66,025 67,490 652,476 
Less interest(2,127)(45,097)(24,283)(419,729)
Total lease liabilities$11,261 $20,928 $43,207 $232,747 
As Lessor
We lease space to tenants under operating leases in an office building purchased in December 2025, see Note 3 for more details on the acquisition. The remaining rental terms range from approximately less than one to six years. The leases provide for the payment of fixed base rents payable monthly. For the year ended December 31, 2025, lease income is included in Hospital division revenue in the consolidated statements of operations.
The following table shows future undiscounted cash flows under our contractual operating leases as of December 31, 2025 (in thousands):
Year ended December 31,Amount
2026$734 
2027580 
2028512 
2029375 
2030151 
Thereafter89 
Total$2,441 

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2021Mar 31, 2022

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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