SANUWAVE Health, Inc.SNWV

SANUWAVE Health, Inc. Leases Disclosure

10-KFiled Mar 26, 20262 min read
Leases
Operating lease commitments - On March 27, 2025, the Company entered into a new operating lease agreement for its new headquarters in Eden Prairie, Minnesota. The lease term commenced on March 28, 2025, and extends for a period of 5.5 years, expiring on August 30, 2030. The lease includes an option to renew for an additional 5 years at the Company's discretion.
Lease payments - Under the terms of the lease, the Company is obligated to make monthly lease payments starting September 1, 2025, with an annual escalation of 3.5% starting on September 1, 2026 through August 30, 2030. The total minimum lease payments over the initial lease term amount to approximately $1.4 million.
Right-of-use asset and lease liability - In accordance with ASC 842, Leases, the Company recognized a right-of-use asset and a corresponding lease liability on the condensed consolidated balance sheets as of March 28, 2025. The initial measurement of the right-of-use asset and lease liability was $0.4 million, which represents the present value of the lease payments over the lease term, discounted at the Company's incremental borrowing rate of 11.5%.
Lease incentive - As part of a new office lease agreement, the Company received reimbursement payments from the lessor as a lease incentive. These payments, totaling $0.6 million, were intended to offset certain costs associated with leasehold improvements.
Lease expense - For the year ended December 31, 2025, the Company recognized lease expense of $123 thousand, related to this operating lease, which is included in general and administrative expenses in the consolidated statements of comprehensive income (loss).
As of December 31, 2025, the maturities of the Company’s operating leases, which have initial or remaining lease terms more than one year, consist of the following:
(in thousands)Operating
Leases
2026$263 
2027272 
2028282 
2029292 
2030199 
Thereafter- 
Total Lease Payments1,308 
Imputed interest(297)
Present value of lease liabilities$1,011 
The weighted-average useful life of operating leases at December 31, 2025, is 4.67 years.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2021May 13, 2022
2020Oct 21, 2021

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.

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