SHF Holdings, Inc. Leases Disclosure
Note 11. Leases
The Company has non-cancellable operating leases for facility space with varying terms. All of the active leases for facility space qualified for capitalization under FASB ASC 842, Leases. These leases have remaining lease terms between one to seven years and may include options to extend the leases for up to ten years. The extension terms are not recognized as part of the right-of-use assets. The Company has elected not to capitalize leases with terms equal to, or less than, one year. As of December 31, 2024, and December 31, 2023, net assets recorded under operating leases were $703,524 and $859,861 respectively, and net lease liabilities were $874,834 and $1,007,993, respectively.
The Company analyzes contracts above certain thresholds to identify leases and lease components. Lease and non-lease components are not separated for facility space leases. The Company uses its contractual borrowing rate to determine lease discount rates when an implicit rate is not available. Total lease cost for the year ended December 31, 2024 and December 31, 2023, included in Consolidated Statements of Operations, is detailed in the table below:
Year ended December 31, 2024 | Year ended December 31, 2023 | |||||||
| Operating lease cost | $ | $ | ||||||
| Short-term lease cost | 258,477 | 315,615 | ||||||
| Total Lease Cost | $ | 258,477 | $ | 315,615 | ||||
| ROU assets that are related to lease properties are presented as follows: | ||||||||
| Beginning balance | $ | 859,861 | $ | 1,016,198 | ||||
| Additions to right-of-use assets | ||||||||
| Amortization charge for the year | (156,337 | ) | (156,337 | ) | ||||
| Lease modifications | ||||||||
| Ending balance | $ | 703,524 | $ | 859,861 | ||||
| Further information related to leases is as follows: | ||||||||
| Weighted-average remaining lease term | 2.42 Years | 3.42 Years | ||||||
| Weighted-average discount rate | 6.87 | % | 6.87 | % | ||||
Future minimum lease payments as of December 31, 2024 and December 31, 2023 are as follows:
| Year | ||||||||
| 2024 | 197,520 | |||||||
| 2025 | 217,925 | 217,925 | ||||||
| 2026 | 222,275 | 222,275 | ||||||
| 2027 | 226,705 | 226,705 | ||||||
| 2028 | 231,216 | 231,216 | ||||||
| Thereafter | 117,709 | 117,710 | ||||||
| Total future minimum lease payments | $ | 1,015,830 | $ | 1,213,351 | ||||
| Less: Imputed interest | 140,996 | 205,358 | ||||||
| Operating lease liabilities | $ | 874,834 | $ | 1,007,993 | ||||
| Less: Current portion | 161,952 | 132,546 | ||||||
| Non-current portion of lease liabilities | $ | 712,882 | $ | 875,447 | ||||
Want the next SHF Holdings, Inc. leases disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment SHF Holdings, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.
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.