YUNHONG GREEN CTI LTD. Leases Disclosure
11. Leases
We enter into lease contracts for certain of our facilities at two locations. Our leases have remaining lease terms of two and five years. On December 18th, 2024, our lease agreement for the Elgin facility was extended through December 31st, 2028.
The table below describes our lease position as of December 31, 2025 and 2024:
| Operating Leases | 2025 | 2024 | ||||||
| Right of use assets | $ | 3,393,000 | $ | 3,950,000 | ||||
| Lease Liabilities - Current | $ | 596,000 | $ | 480,000 | ||||
| Lease Liabilities – Noncurrent | $ | 2,873,000 | $ | 3,470,000 | ||||
During the years ended December 31, 2025 and 2024, we recorded operating lease expenses to general and administrative expense of $1,085,000 and $1,030,000, respectively.
At December 31, 2025, maturities of operating lease liabilities are as follows:
| 2026 | $ | 1,048,000 | ||
| 2027 | 1,083,000 | |||
| 2028 | 1,119,000 | |||
| 2029 | 627,000 | |||
| 2030 | 646,000 | |||
| Thereafter | 217,000 | |||
| Total Lease Payments | 4,740,000 | |||
| Less: Imputed interest | (1,271,000 | ) | ||
| Total Lease Liabilities | $ | 3,469,000 |
As of December 31, 2025, the weighted average remaining lease term and weighted average discount rate for our operating leases are 4.5 years and 14.07%, respectively. We calculated the weighted-average discount rate using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
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.