PERMA FIX ENVIRONMENTAL SERVICES INC Leases Disclosure
NOTE 4
LEASES
The components of lease cost for the Company’s leases were as follows (in thousands):
| Twelve Months Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating Leases: | ||||||||
| Lease cost | $ | 483 | $ | 541 | ||||
| Finance Leases: | ||||||||
| Amortization of ROU assets | 271 | 261 | ||||||
| Interest on lease liability | 97 | 81 | ||||||
| 368 | 342 | |||||||
| Short-term lease rent expense | 9 | 6 | ||||||
| Total lease cost | $ | 860 | $ | 889 | ||||
The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of December 31, 2025, were:
| Operating Leases | Finance Leases | |||||||
| Weighted average remaining lease terms (years) | 3.7 | 3.1 | ||||||
| Weighted average discount rate | 7.8 | % | 9.6 | % | ||||
The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of December 31, 2024, were:
| Operating Leases | Finance Leases | |||||||
| Weighted average remaining lease terms (years) | 4.7 | 3.8 | ||||||
| Weighted average discount rate | 7.7 | % | 9.2 | % | ||||
The following table reconciles the undiscounted cash flows for the operating and finance leases as of December 31, 2025, to the operating and finance lease liabilities recorded on the balance sheet (in thousands):
| Operating Leases | Finance Leases | |||||||
| 2026 | $ | 530 | $ | 389 | ||||
| 2027 | 467 | 372 | ||||||
| 2028 | 355 | 198 | ||||||
| 2029 | 349 | 118 | ||||||
| 2030 | 77 | 4 | ||||||
| Total undiscounted lease payments | 1,778 | 1,081 | ||||||
| Less: Imputed interest | (260 | ) | (149 | ) | ||||
| Present value of lease payments | $ | 1,518 | $ | 932 | ||||
| Current portion of operating lease obligations | $ | 416 | $ | N/A | ||||
| Long-term operating lease obligations, less current portion | $ | 1,102 | $ | N/A | ||||
| Current portion of finance lease obligations | $ | N/A | $ | 313 | ||||
| Long-term finance lease obligations, less current portion | $ | N/A | $ | 619 |
Supplemental cash flow and other information related to our leases were as follows (in thousands):
| Twelve Months Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flow from operating leases | $ | 486 | $ | 526 | ||||
| Operating cash flow from finance leases | $ | 97 | $ | 81 | ||||
| Financing cash flow from finance leases | $ | 308 | $ | 291 | ||||
| ROU assets obtained in exchange for lease obligations for: | ||||||||
| Finance liabilities | $ | 464 | $ | |||||
| Operating liabilities | $ | 90 | $ | 497 | ||||
| Reduction to ROU assets resulting from purchase of underlying asset: | ||||||||
| Operating liabilities | $ | $ | 404 | |||||
The reduction in ROU assets in 2024 as noted above resulted from the purchase by the Company in July 2024 of the property where its EWOC facility conducts its waste treatment operations. The Company previously leased this property which was included within its operating leases (see “Note 9 – Long Term Debt” for a discussion of the purchase of this property by the Company).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Apr 6, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 20, 2020 | |
| 2018 | Apr 1, 2019 | |
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.