Rumble Inc. Leases Disclosure
| 7. | Right-of-Use Assets and Lease Liabilities |
The Company leases several facilities and data centers under non-cancelable operating leases. These leases have original lease periods expiring between 2026 and 2027. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
| As of December 31, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| Accumulated | Accumulated | |||||||||||||||
| Cost | Amortization | Cost | Amortization | |||||||||||||
| Right-of-use assets | $ | 5,229,708 | $ | (3,361,250 | ) | $ | 4,109,922 | $ | (2,356,822 | ) | ||||||
| Net carrying value | $ | 1,868,458 | $ | 1,753,100 | ||||||||||||
Operating lease costs for the years ended December 31, 2025 and 2024 were $1,392,053 and $1,175,186, respectively. These costs are included in general and administrative expenses in the consolidated statements of operations.
Supplemental balance sheet information related to the operating lease liabilities is as follows:
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Weighted-average remaining lease term | 1.59 years | 1.85 years | ||||||
| Weighted-average incremental borrowing rate | 11.51 | % | 7.26 | % | ||||
The following shows the future minimum lease payments for the remaining years under the lease arrangements as of December 31, 2025:
| 2026 | $ | 1,426,242 | ||
| 2027 | 627,394 | |||
| 2,053,636 | ||||
| Less: imputed interest* | (139,064 | ) | ||
| 1,914,572 | ||||
| Current portion | $ | 1,281,444 | ||
| Long-term portion | $ | 633,128 |
| * | Imputed interest represents the difference between undiscounted cash flows and cash flows |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 30, 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.