NextBoat Inc. Leases Disclosure
NOTE 13. LEASE
The balances for the operating leases where the Company is the lessee are presented within the balance sheets as follows:
| Operating leases | December 31, 2025 | December 31, 2024 | ||||||
| Right of use-assets | $ | 6,516,415 | $ | 1,505,986 | ||||
| Lease liability-current | 963,731 | 382,731 | ||||||
| Lease liability-non-current | 5,650,165 | 1,136,624 | ||||||
| Total operating lease liabilities | $ | 6,613,896 | $ | 1,519,355 | ||||
| Weighted average remaining lease term (in years) | 7.19 | 4.25 | ||||||
| Weighted average discount rate (%) | 6.50 | 6.50 | ||||||
The components of lease expenses for the years ended December 31, 2025 and 2024 were as follows:
| For the years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease cost | $ | 611,124 | $ | 272,087 | ||||
| Cost of other leases with period less than one year and variable lease costs | 257,122 | 191,908 | ||||||
| $ | 868,246 | $ | 463,995 | |||||
The components of lease expenses for the years ended December 31, 2025 and 2024 were operating lease cost of $868,246 and $463,995, respectively.
Supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 were as follows:
| For the years ended December 31, | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | 2025 | 2024 | ||||||
| Operating cash flows from operating leases | $ | 868,246 | $ | 463,995 | ||||
| Supplemental noncash information: | ||||||||
| Right-of-use assets obtained in exchange for lease obligation: | $ | 5,602,229 | $ | 1,498,815 | ||||
As of December 31, 2025, the maturities of operating lease liabilities (excluding short-term lease) are as follows:
| For the year ending December 31, 2025 | Operating Lease | |||
| 2026 | $ | 1,021,081 | ||
| 2027 | 1,041,683 | |||
| 2028 | 1,059,413 | |||
| 2029 | 934,337 | |||
| 2030 | 581,241 | |||
| 2031 and thereafter | 2,187,533 | |||
| Total lease payments | 6,825,288 | |||
| Less: Imputed interest | (211,392 | ) | ||
| Present value of lease liabilities | $ | 6,613,896 | ||
| Less: current portion | (963,731 | ) | ||
| Lease obligations, noncurrent | 5,650,165 | |||
Supplemental Information for Comparative Periods
As of December 31, 2024, the maturities of operating lease liabilities (excluding short-term lease) are as follows:
| For the year ending December 31, 2024 | Operating Lease | |||
| 2025 | $ | 401,998 | ||
| 2026 | 346,352 | |||
| 2027 | 314,047 | |||
| 2028 | 323,468 | |||
| 2029 | 179,698 | |||
| Total lease payments | 1,565,563 | |||
| Less: Imputed interest | (46,208 | ) | ||
| Present value of lease liabilities | $ | 1,519,355 | ||
| Less: current portion | (382,731 | ) | ||
| Lease obligations, noncurrent | 1,136,624 | |||
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.