Note 5 — Leases

 

Operating Lease Agreements

 

The Company leases its headquarters office from an unrelated third party under a lease expiring in September 2027. The amortization expense of the right of use lease asset was $0.2 million for the years ended December 31, 2025 and 2024. In January 2025, the Company entered into a sublease agreement with an unrelated third party to lease a new office space which is adjacent to the current headquarters office. The sublease is effective from January 2025 to September 2027.

 

The following table presents information about the amount, timing and uncertainty of future cash flows arising from the Company’s operating leases as of December 31, 2025.

 

Maturity of Operating Lease Liability  Amount 
2026   281 
2027   214 
Total undiscounted operating leases payments  $495 
Less: Imputed interest   (24)
Present Value of Operating Lease Liability  $471 
Operating lease liability, current portion  $262 
Operating lease liability, net of current portion  $209 
      
Other Information     
Weighted-average remaining lease term    1.75 years  
Weighted-average discount rate   5.32%

 

Cash paid for amounts included in the measurement of operating lease liabilities was $0.2 million for the years ended December 31, 2025 and 2024, and is included in cash flows from operating activities in the accompanying consolidated statements of cash flows.

 

Operating lease cost recognized as expense was $0.3 million and $0.2 million for the years ended December 31, 2025 and 2024, respectively. The financing component for operating lease obligations represents the effect of discounting the operating lease payments to their present value.

 

Lessor Accounting

 

The Company, through its subsidiary, Sensus Healthcare Services, LLC, leases superficial radiotherapy equipment to dermatology clinics. These leases generally have an initial term of 60 months and automatically renew for a one-year period upon the expiration of the initial lease term. Payments due under the leases may be fixed or variable payments.

 

The components of lease income for the years ended December 31, 2025 and 2024 are as follows:

 

   For the Years Ended
December 31,
 
(in thousands)  2025   2024 
Lease income - operating leases - fixed payments  $256   $192 
Lease income - operating leases - variable payments   1,465    55 
Total  $1,721   $247 

 

The future minimum fixed lease payments to be received under the lease agreements as of December 31, 2025 are as follows:

 

(in thousands)  Amount 
2026   256 
2027   256 
2028   256 
2029   256 
Thereafter   87 
Total  $1,111 

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Historical Timeline

Fiscal YearFiled
2025Mar 4, 2026Showing above
2024Mar 5, 2025
2023Mar 15, 2024
2022Mar 23, 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.