Resolute Holdings Management, Inc. Leases Disclosure
11. LEASES
The Company leases certain office space and manufacturing space under arrangements currently classified as leases under ASC 842, Leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal options ranging from to years. The exercise of lease renewal options is at the Company’s sole discretion.
As of December 31, 2025, the Company’s leases have remaining lease terms of to . The Company does not include any renewal options in lease terms when calculating lease liabilities as the Company is not reasonably certain that it will exercise these options. Four of the Company’s leases provide an early termination option, however, the option was not included in the lease terms when calculating the lease liability since the Company determined that it is reasonably certain the Company will not terminate the leases prior to the termination date. Significant assumptions and judgments are made in the determination of the discount rate for leases.
The weighted-average remaining lease term for the Company’s leases is years as of December 31, 2025. The weighted-average discount rate used in the measurement of the lease liabilities was 6.64% as of December 31, 2025.
The Company has lease agreements that contain both lease and non-lease components. The Company accounts for lease components together with non-lease components (e.g., common-area maintenance). Variable lease costs are based on day to day common-area maintenance costs related to the lease agreements and are recognized as incurred.
The components of lease costs were as follows:
Year ended | ||||||
December 31, | ||||||
2025 | | 2024 | ||||
Operating lease cost | $ | 2,690 | $ | 2,336 | ||
Variable lease cost |
| 1,083 |
| 929 | ||
Total lease cost | $ | 3,773 | $ | 3,265 | ||
Future minimum commitments under all non-cancelable operating leases as of December 31, 2025 are as follows:
2026 | $ | 2,882 | |
2027 |
| 2,276 | |
2028 |
| 2,240 | |
2029 |
| 1,784 | |
2030 | 1,407 | ||
Later years | 2,447 | ||
Total lease payments |
| 13,036 | |
Less: Imputed interest |
| (2,466) | |
Present value of lease liabilities | $ | 10,570 |
Supplemental cash flow information and non-cash activity related to our operating leases are as follows:
Year ended | ||||||
December 31, | ||||||
| 2025 | | 2024 | |||
Operating cash flow information: | |
| | |||
Cash paid for amounts included in the measurement of lease liabilities | $ | 2,718 | $ | 2,446 | ||
Non-cash activity: |
|
| | |||
Right-of-use assets obtained in exchange for lease obligations | $ | 6,613 | $ | — | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
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.