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 YearFiled
2025Apr 29, 2026Showing above
2024Mar 11, 2025
2023Mar 20, 2024
2022Mar 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.