Sadot Group Inc. Leases Disclosure
13. Leases
The Company’s leases as of December 31, 2025 consisted of a corporate office. Please see Note 18 – Commitments and contingencies for further details. The Company determines if a contract contains a lease at inception. The leases generally have remaining terms of 1-5 years and most leases include the option to extend the leases for an additional 5 years.
The total lease cost associated with Right of use assets and Operating lease liabilities for the year ended December 31, 2025, was $0.1 million and has been recorded in the Consolidated Statement of Operations and Other Comprehensive Loss within Cost of goods sold.
During the year ended December 31, 2025, none of the Company’s lease liabilities were moved to Liabilities held for sale. See Note 4 – Assets held for sale and Note 5 – Discontinued operations for additional information. Right to use asset and operating lease liabilities decreased due to the refranchising, sale and closure of all corporate owned locations by December 31, 2025.
The Company’s assets and liabilities related to the Company’s leases were as follows:
| As of | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| $’000 | $’000 | |||||||
| Assets | ||||||||
| Right to use asset | 110 | 132 | ||||||
| Total lease assets | 110 | 132 | ||||||
| Liabilities | ||||||||
| Total lease liabilities | 111 | 272 | ||||||
| Transferred to liabilities held for sale | (138 | ) | ||||||
| Operating leases – current | 27 | 23 | ||||||
| Operating leases – non-current | 84 | 111 | ||||||
The table below presents the future minimum lease payments under the noncancellable operating leases as of December 31, 2025:
| Total | Operating Leases Held for Sale | Current Operating Leases | ||||||||||
| $’000 | $’000 | $’000 | ||||||||||
| Fiscal Year: | ||||||||||||
| 1/1/2026-12/31/2026 | 45 | 45 | ||||||||||
| 1/1/2027-12/31/2027 | 45 | 45 | ||||||||||
| 1/1/2028-12/31/2028 | 45 | 45 | ||||||||||
| 1/1/2029-12/31/2029 | 11 | 11 | ||||||||||
| 1/1/2030-12/31/2030 | ||||||||||||
| Thereafter | ||||||||||||
| Total lease payments | 147 | 147 | ||||||||||
| Less imputed interest | 35 | 35 | ||||||||||
| Present value of lease liabilities | 111 | 111 | ||||||||||
The Company’s lease term and discount rates were as follows:
| As of December 31, 2025 | ||||
| Weighted-average remaining lease term (in years) | ||||
| Operating leases | 3.28 | |||
| Weighted-average discount rate | ||||
| Operating leases | 18.0 | % | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 29, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 21, 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.