PureCycle Technologies, Inc. Leases Disclosure
NOTE 11 - LEASES
The Company leases real estate, equipment, and vehicles. The Company’s most significant individual lease arrangements relate to real estate with lease terms ranging from 1 to 30 years. Lease terms include renewal or termination options the Company is reasonably certain to exercise.
In May 2024, the Company sublet the leased space that previously housed its corporate headquarters in Orlando, FL and has no further involvement in that property. The Company recognized a $0.8 million
impairment on the related ROU asset, which is recorded in other (income)/expense, net in the Consolidated Statements of Comprehensive Loss.
The components of lease expense and supplemental cash flow information related to leases for the period are as follows:
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Year Ended December 31, |
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(in thousands) |
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2025 |
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|
2024 |
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|
2023 |
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Lease cost |
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Operating lease cost |
|
$ |
8,279 |
|
|
$ |
5,668 |
|
|
$ |
4,171 |
|
Short-term lease cost |
|
|
1,706 |
|
|
|
1,447 |
|
|
|
1,175 |
|
Total lease cost |
|
$ |
9,985 |
|
|
$ |
7,115 |
|
|
$ |
5,346 |
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Other information |
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Cash paid for amounts included in the measurement |
|
$ |
7,723 |
|
|
$ |
5,401 |
|
|
$ |
3,772 |
|
Right-of-use assets obtained in exchange for new |
|
$ |
550 |
|
|
$ |
31,527 |
|
|
$ |
13,578 |
|
The weighted-average remaining lease term and weighted-average discount rate for our operating lease liabilities as of December 31, 2025 were 14.1 years and 6.5%, respectively.
The supplemental balance sheet information related to leases for the period is as follows:
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|
December 31, |
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(in thousands) |
|
2025 |
|
|
2024 |
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Operating lease right-of-use assets |
|
$ |
54,226 |
|
|
$ |
56,833 |
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|
|
|
|
|
|
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Operating lease liabilities |
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|
|
|
|
|
||
|
$ |
3,061 |
|
|
$ |
3,110 |
|
|
Operating lease right-of-use liabilities |
|
|
52,350 |
|
|
|
54,665 |
|
Total operating lease liabilities |
|
$ |
55,411 |
|
|
$ |
57,775 |
|
Maturities of the Company’s lease liabilities are as follows (in thousands):
Year Ended December 31, |
|
Lease Liabilities |
|
|
2026 |
|
$ |
6,543 |
|
2027 |
|
|
7,360 |
|
2028 |
|
|
6,113 |
|
2029 |
|
|
5,902 |
|
2030 |
|
|
5,999 |
|
Thereafter |
|
|
60,343 |
|
Total future minimum lease payments |
|
|
92,260 |
|
Less: Imputed interest |
|
|
(36,849 |
) |
Present value of lease liabilities |
|
$ |
55,411 |
|
Sale-leaseback Transaction
The Company is party to a sale-leaseback arrangement with The Development Authority of Augusta, Georgia (“AEDA”) related to the Augusta Facility. The improvements and equipment, when completed and placed in service, will be transferred to the AEDA and leased back by PCT. The arrangement has an initial expiration date in 2044 and continues to provide local property tax incentives to the Company.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 16, 2023 | |
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.