SkyWater Technology, IncSKYT

SkyWater Technology, Inc Leases Disclosure

10-KFiled Mar 11, 20262 min read
Leases
The components of lease expense are as follows:
Fiscal Year Ended
December 28, 2025December 29, 2024
Operating lease cost$51 $51 
Finance lease cost
Amortization of assets1,903 913 
Interest on lease liabilities1,569 802 
Total net lease cost$3,523 $1,766 
Supplemental cash flow information related to leases are as follows:
Fiscal Year Ended
December 28, 2025December 29, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases$53 $51 
Operating cash flows used for finance leases1,569 802 
Financing cash flows used for finance leases1,232 646 
ROU assets obtained in exchange for lease liabilities
Finance leases19,182 — 
The weighted average remaining lease term and weighted average discount rates related to leases are as follows:
December 28, 2025December 29, 2024
Weighted average remaining lease term
Operating leases
0 years1.0 years
Finance leases
9.4 years11.8 years
Weighted average discount rate
Operating leases
— %4.8 %
Finance leases
8.7 %8.8 %
Supplemental balance sheet information related to leases is as follows:
LeasesClassificationDecember 28, 2025December 29, 2024
ROU assets
Operating lease ROU assets
Other assets
$— $49 
Finance lease ROU assets
Property and equipment, net
25,677 8,443 
Total lease ROU assets
25,677 8,492 
Operating lease liabilities
Current portion of operating lease liabilities
Accrued expenses
— 52 
Total operating lease liabilities
— 52 
Finance lease liabilities
Current portion of finance lease liabilities
Accrued expenses
2,203 608 
Finance lease liabilities, excluding current portion
Other long-term liabilities
24,859 8,652 
Total finance lease liabilities
27,062 9,260 
Total lease liabilities$27,062 $9,312 
Future maturities of lease liabilities as of December 28, 2025 are as follows:
Fiscal YearFinance Leases
2026$4,410 
20274,338 
20284,089 
20294,075 
20304,075 
Thereafter
18,577 
Total lease payments39,563 
Less: Imputed interest
(12,501)
Total lease liabilities$27,062 
SkyWater as the Lessor
In March 2020, SkyWater executed a contract with a customer that includes an operating lease for the right to use a specified portion of the Company’s Minnesota facility to produce wafers using the customer’s equipment. The contractual amount that relates to revenue from an operating lease was $21,000, and is being recognized over the estimated lease term of 4.5 years. The total amount was prepaid by the customer and recorded as deferred revenue - see Note 5 – Revenue.
As part of the Fab 25 Transaction, the Company entered into a multi-year lease agreement to lease a portion of the acquired office space at the Austin, Texas facility back to Infineon for the first four-year period following the closing of the Transaction. The lease agreement provides for lease payments of $1,200 annually through June 2029, after which time the agreement can be extended with lease payments adjusted based on fair market value escalators.

Historical Timeline

Fiscal YearFiled
2025Mar 11, 2026Showing above
2024Mar 14, 2025
2023Mar 15, 2024

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.

Other Available Disclosures

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