Venu Holding Corp Leases Disclosure

NOTE 5 – LEASES

 

The Company leases the properties used for some of its restaurants, venues, office space and parking spaces.

 

Through June 30, 2022, the Company leased the land and buildings used in BBST and BBP operations from HIA. On April 1, 2022, the Company purchased a controlling interest in the equity of HIA. Accordingly, the impact of the lease is eliminated in the consolidated financial statements. Notes in Colorado Springs leased its property from 13141 BP, LLC (“13141 BP”), a related party (refer to Note 7– Related Party Transactions footnote for further details) through June 26, 2022, when the Company acquired the membership interests of 13141 BP. The lease was structured as a triple net (“NNN”) lease, which this type of lease includes costs of maintenance, repairs, operations, taxes and insurance, with annual rents of $90,000 through July 1, 2024 and throughout 2023. The lease was amended as of July 1, 2024, to include costs of maintenance, repairs, operations, taxes and insurance. As of the acquisition date, the lease is eliminated in consolidations. As of July 18, 2025, 13141 BP sold the land and building to a 3^rd party and Notes Eatery ceased its operations.

 

The Company leases its office space from an unrelated party. The lease is until November 30, 2029 and escalates in base rent by 1.3% each year. Additionally, the Company leases an executive apartment from an unrelated party. The lease was terminated early in January 2026.

 

On November 5, 2025, the Company entered into a ground lease agreement with a related party (“Landlord”) to lease the land owned by PPP used for parking by Sunset Ops (this includes the land and improvements, collectively the “Property”) for a 20-year term under a NNN lease structure with an option to re-purchase the Property within the first three years of the closing date of the sale at a fixed price, which would return the asset to the Company’s balance sheet. The Landlord is wholly owned by a significant shareholder of the Company. Annual base rent is initially $1,050,000 and escalates by 2.5% each year beginning on November 5, 2026.

 

Total rent expense related to leased assets including short-term leases and variable costs were $1,949,705 and $1,703,496 for the years ended December 31, 2025 and 2024 respectively. Total cash paid for rent expense to leased assets was $590,487 and $465,892 for the years ended December 31, 2025 and 2024, respectively.

 

 

VENU HOLDING CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED

DECEMBER 31, 2025 AND 2024

 

NOTE 5 – LEASES (Continued)

 

The following table shows balance sheet information related to the operating leases:

SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASES 

Balance Sheet Information		Classification		2025				2024
				As of
Balance Sheet Information		Classification		December 31, 2025				December 31, 2024
Assets
Right-of-use assets		Operating Leases		$	17,397,009			$	1,351,600
Liabilities
Current portion of lease liabilities		Operating Leases		$	605,261			$	364,244
Long-term portion of lease liabilities		Operating Leases		$	16,886,027			$	1,020,604
Total lease liabilities				$	17,491,288			$	1,384,848

 

The future minimum lease payments of existing operating lease liabilities are as follows:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF OPERATING LEASE LIABILITIES 

		For the year ending
		December 31,
2026		$	1,446,995
2027			1,365,672
2028			1,350,846
2029			1,360,832
2030			1,163,833
Thereafter			21,104,749
Total lease payments		$	27,792,927
Less: imputed interest			(10,301,639	)
Present value of lease liabilities		$	17,491,288
Less: current portion			(605,261	)
Long-term portion		$	16,886,027

 

SCHEDULE OF SUPPLEMENTAL INFORMATION OF OPERATING LEASES  

		As of
		December 31,				December 31,
		2025				2024
Weighted-average remaining lease term (years)			18.88				4.16
Weighted-average discount rate			5.04	%			5.66	%