SUI Group Holdings Ltd. Leases Disclosure
NOTE 4 — LEASES
We are subject to two non-cancelable operating leases for office space expiring May 31, 2024. These leases do not have significant payment escalations, holidays, concessions, leasehold improvements, or other build-out clauses. Further, the leases do not contain contingent rent provisions. The leases do not include options to renew.
Because our lease does not provide an implicit rate, we use our incremental borrowing rate in determining the present value of the lease payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The weighted-average discount rate as of December 31, 2023 and December 31, 2022 was 4.5% and the weighted-average remaining lease term was less than one year, and one year, respectively.
Rent expense for office facilities for the year ended December 31, 2023 and 2022 was $68,421 and $73,146, respectively.
The components of our operating leases were as follows for the years ended December 31:
|
| 2023 |
|
| 2022 |
| ||
|
|
|
|
|
|
| ||
Operating lease costs |
| $ | 21,975 |
|
| $ | 21,291 |
|
Variable lease cost |
|
| 19,572 |
|
|
| 18,325 |
|
Short-term lease cost |
|
| 26,874 |
|
|
| 33,530 |
|
Total |
| $ | 68,421 |
|
| $ | 73,146 |
|
Supplemental balance sheet information consisted of the following at December 31:
Operating Lease |
| 2023 |
|
| 2022 |
| ||
Right-of-use assets |
| $ | 9,283 |
|
| $ | 16,398 |
|
|
|
|
|
|
|
|
|
|
Operating Lease Liability |
| $ | 9,283 |
|
| $ | 16,562 |
|
Less: short term portion |
|
| (9,283 | ) |
|
| (16,562 | ) |
Long term portion |
| $ | — |
|
| $ | — |
|
Maturity analysis under lease agreements consisted of the following as of December 31:
|
| 2023 |
|
| 2022 |
| ||
2023 |
| $ | — |
|
| $ | 16,675 |
|
2024 |
| $ | 9,353 |
|
| $ | — |
|
Total lease payments |
|
| 9,353 |
|
|
| 16,675 |
|
Less: Present value discount |
|
| (70 | ) |
|
| (113 | ) |
Present value of lease liabilities |
| $ | 9,283 |
|
| $ | 16,562 |
|
Supplemental cash flow information related to leases for the years ended December 31:
|
| 2023 |
|
| 2022 |
| ||
Operating cash outflow from operating leases |
| $ | 69,743 |
|
| $ | 75,146 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Apr 2, 2024 | Showing above |
| 2022 | Apr 17, 2023 | |
| 2021 | Mar 14, 2022 | |
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.