Royalty Management Holding Corp Leases Disclosure
NOTE 8 - LEASES
The operating right-of-use asset (“ROU”) is the Company’s right to use an asset over the life of a lease. The asset is calculated as the initial amount of the lease liability, plus any lease payments made to the lessor before the lease commencement date, plus any initial direct costs incurred, minus any lease incentives received. The Company leases certain land and office space under noncancelable operating leases, typically with initial terms of 5 to 21 years.
As of December 31, 2025 and 2024 right of use assets and liabilities were comprised of the following:
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| December 31, 2025 |
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| December 31, 2024 |
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Assets: |
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ROU Assets |
| $ | 402,754 |
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| $ | 421,550 |
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Accumulated Amortization |
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| (100,957 | ) |
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| (65,826 | ) |
ROU Assets, Net |
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| 301,797 |
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| 355,724 |
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Liabilities |
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Current: |
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Operating Lease Liabilities |
| $ | 36,996 |
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|
| 33,490 |
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Non-Current |
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Operating Lease Liabilities |
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| 308,402 |
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| $ | 326,248 |
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| For the Years Ended December 31, |
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| Expense Classification |
| 2025 |
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| 2024 |
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Operating Lease Expenses: |
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Amortization of ROU Assets |
| General and Administrative |
| $ | 33,388 |
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| $ | 31,414 |
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Accretion of Operating Lease Liabilities |
| General and Administrative |
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| 34,941 |
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| 38,115 |
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Total Operating Lease Expenses |
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| $ | 68,329 |
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| $ | 69,529 |
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Other information related to leases is as follows: |
| As of |
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| As of |
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| December 31, |
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| December 31, |
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| 2025 |
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| 2024 |
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Weighted-Average Remaining Lease Term: Operating Leases (in Years) |
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| 2.99 |
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| 3.04 |
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Weighted-Average Discount Rate: Operating Leases |
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| 10.00 | % |
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| 10.00 | % |
As of December 31, 2025, remaining maturities of lease liabilities were as follows:
2026 |
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| 69,492 |
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2027 |
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| 69,492 |
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2028 |
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| 45,492 |
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2029 |
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| 45,492 |
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2030 |
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| 45,492 |
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Thereafter |
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| 320,238 |
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Total Lease Payments |
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| 595,698 |
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Less Imputed Interest |
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| (250,300 | ) |
Present Value of Lease Liabilities |
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| 345,398 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 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.