SBC Medical Group Holdings Inc Leases Disclosure
NOTE 16 — LEASES — AS A LESSEE
The Company has entered into operating leases for offices and sublease purposes, with terms ranging from two to seven years, and finance leases for certain medical and office equipment, with terms of four to five years. The estimated effect of lease renewal and termination options, as applicable, that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use assets and lease liabilities was included in the consolidated financial statements.
During the years ended December 31, 2025 and 2024, certain operating leases were guaranteed by related parties of the Company.
Operating lease expenses for lease payments are recognized on a straight-line basis over the lease term. Finance lease costs include amortization, which is recognized on a straight-line basis over the expected life of the leased assets, and interest expenses, which are recognized following an effective interest rate method. Leases with an initial term of twelve months or less are not recorded in the consolidated balance sheets.
The components of lease costs are as follows:
|
|
For the Years |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Finance lease costs: |
|
|
|
|
|
|
||
Amortization of finance lease right-of-use assets |
|
$ |
103,698 |
|
|
$ |
— |
|
Interest on finance lease liabilities |
|
|
12,345 |
|
|
|
— |
|
Total finance lease costs |
|
|
116,043 |
|
|
|
— |
|
Operating lease costs |
|
|
4,730,006 |
|
|
|
3,877,048 |
|
Short-term lease costs |
|
|
515,735 |
|
|
|
286,009 |
|
Total lease costs |
|
$ |
5,361,784 |
|
|
$ |
4,163,057 |
|
NOTE 16 — LEASES — AS A LESSEE (cont.)
The following table presents supplemental information related to the Company’s leases:
|
|
For the Years |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
||
Operating cash flows from operating leases |
|
$ |
4,927,460 |
|
|
$ |
4,105,434 |
|
Operating cash flows from finance leases |
|
|
12,345 |
|
|
|
— |
|
Financing cash flows from finance leases |
|
|
331,365 |
|
|
|
— |
|
Non-cash information: |
|
|
|
|
|
|
||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities |
|
|
1,322,455 |
|
|
|
— |
|
Finance lease right-of-use assets obtained in exchange for finance lease liabilities |
|
|
612,466 |
|
|
|
— |
|
Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications |
|
|
5,302,043 |
|
|
|
2,908,554 |
|
Weighted average remaining lease term (years) |
|
|
|
|
|
|
||
Operating leases |
|
|
2.40 |
|
|
|
1.66 |
|
Finance leases |
|
|
2.29 |
|
|
|
— |
|
Weighted average discount rate (per annum) |
|
|
|
|
|
|
||
Operating leases |
|
|
0.82 |
% |
|
|
0.65 |
% |
Finance leases |
|
|
5.14 |
% |
|
|
— |
|
As of December 31, 2025, the future maturity of operating and finance lease liabilities is as follows:
Years ending December 31, |
|
Operating |
|
|
Finance |
|
||
2026 |
|
$ |
4,376,464 |
|
|
$ |
133,483 |
|
2027 |
|
|
2,389,691 |
|
|
|
77,228 |
|
2028 |
|
|
1,592,536 |
|
|
|
44,084 |
|
2029 |
|
|
240,370 |
|
|
|
7,387 |
|
2030 |
|
|
55,003 |
|
|
|
— |
|
Thereafter |
|
|
— |
|
|
|
— |
|
Total undiscounted lease payments |
|
|
8,654,064 |
|
|
|
262,182 |
|
Less: imputed interest |
|
|
(100,847 |
) |
|
|
(12,709 |
) |
Present value of lease liabilities |
|
|
8,553,217 |
|
|
|
249,473 |
|
Less: lease liabilities, current |
|
|
(4,416,960 |
) |
|
|
(132,946 |
) |
Lease liabilities, non-current |
|
$ |
4,136,257 |
|
|
$ |
116,527 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 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.