Paysign, Inc. Leases Disclosure
6. LEASE
The Company entered into an operating lease for office space which became effective in June 2020. The lease term is 10 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of December 31, 2025, the remaining lease term was 4.4 years and the discount rate used was 6%.
The Company entered into an operating lease for additional office space which became effective in September 2025. The lease term is 7.4 years from the effective date and allows for two optional extensions of five years each. The two optional extensions are not recognized as part of the right-of-use asset or lease liability since it is not reasonably certain that the Company will extend this lease. As of December 31, 2025, the remaining lease term was 7.1 years and the discount rate used was 8%.
Operating lease cost included in selling, general and administrative expenses was $1,001,503 and $758,068 for the years ended December 31, 2025 and 2024, respectively, which amounts include common area maintenance expenses of $177,869 and $135,095, respectively. Cash paid for operating lease was $612,006 and $571,968 for the years ended December 31, 2025 and 2024, respectively.
The following is the lease maturity analysis of our operating leases as of December 31, 2025:
Twelve months ending December 31,
| 2026 | $ | 1,156,518 | ||
| 2027 | 1,277,013 | |||
| 2028 | 1,296,105 | |||
| 2029 | 1,315,770 | |||
| 2030 | 962,340 | |||
| Thereafter | 1,516,755 | |||
| Total lease payments | 7,524,501 | |||
| Less: imputed interest | (1,499,107 | ) | ||
| Present value of future lease payments | 6,025,394 | |||
| Less: current portion of lease liability | (751,503 | ) | ||
| Long-term portion of lease liability | $ | 5,273,891 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2021 | Mar 23, 2022 | |
| 2020 | Mar 26, 2021 | |
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.