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 and $0.2 million for the years ended December 31, 2024 and 2023, respectively. 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 will be effective from January 2025 to September 2027.

 

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2024.

 

Maturity of Operating Lease Liability  Amount 
2025  $229 
2026   236 
2027   181 
Total undiscounted operating leases payments  $646 
Less: Imputed interest   (44)
Present Value of Operating Lease Liability  $602 
Operating lease liability, current portion  $204 
Operating lease liability, net of current portion  $398 
      
Other Information     
Weighted-average remaining lease term    2.75 years  
Weighted-average discount rate   5%

 

Cash paid for amounts included in the measurement of operating lease liabilities was $0.2 million and $0.2 million for the years ended December 31, 2024 and 2023, respectively, and is included in cash flows from operating activities in the accompanying consolidated statements of cash flows.

 

Operating lease cost recognized as expense was $0.2 million for the years ended December 31, 2024 and 2023. The financing component for operating lease obligations represents the effect of discounting the operating lease payments to their present value.

 

Lessor Accounting

 

Beginning in the quarter ended June 30, 2024, the Company, through its subsidiary, Sensus Healthcare Services, LLC, leases superficial radiotherapy equipment to dermatology clinics. These leases generally have an initial lease 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 year ended December 31, 2024 are as follows:

 

     For the 
     Year Ended 
(in thousands)    December 31, 2024 
Lease income - operating leases - fixed payments    $192 
Lease income - operating leases - variable payments     55 
Total    $247 

 

The future minimum fixed lease payments to be received under the lease agreements as of December 31, 2024 are as follows:

 

(in thousands)   Amount 
2025   $256 
2026    256 
2027    256 
2028    256 
2029    256 
Thereafter    87 
Total    $1,367 

 

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.