ZeroStack Corp. Leases Disclosure
15. LEASES
The Company's leases primarily consist of administrative real estate leases in Germany and the United States. Management has determined all the Company's leases are operating leases through December 31, 2025. Information regarding the Company's leases is as follows:
| Thousands of United States dollars | Year ended December 31, 2025 |
Year ended December 31, 2024 |
||||
| Components of lease expense | ||||||
| Operating lease expense | $ | 151 | $ | 102 | ||
| Short-term lease expense | 39 | 19 | ||||
| Sublease income | (105 | ) | (103 | ) | ||
| Total lease expense | $ | 85 | $ | 18 | ||
| Other Information | ||||||
| Operating cash outflows from operating leases | $ | 209 | $ | 158 | ||
| ROU assets obtained in exchange for new operating lease liabilities | 325 | 111 | ||||
| Weighted-average remaining lease term in years for operating leases | 3.4 | 2.2 | ||||
| Weighted-average discount rate for operating leases | 9.4% | 9.2% |
Maturities of operating lease liabilities as of December 31, 2025 are as follows:
| Thousands of United States dollars | Operating Leases | ||
| 2026 | $ | 195 | |
| 2027 | 111 | ||
| 2028 | 103 | ||
| 2029 | 89 | ||
| 2030 | 15 | ||
| Thereafter | - | ||
| Total future lease payments | 513 | ||
| Less: imputed interest | (71 | ) | |
| Total lease liabilities | 442 | ||
| Less: current lease liabilities | (163 | ) | |
| Total non-current lease liabilities | $ | 279 |
Some of the Company's leases contain renewal options to continue the leases for another term equivalent to the original term, which are generally up to five years. The lease liabilities above include renewal terms that management has executed or is reasonably certain of renewing, which only included leases that would have expired in 2025 or 2026.
In March 2025, the Company began leasing 10,400 sq. ft. of warehouse and office space in Hilzingen, Germany, for $1,000 a month, pursuant to a lease agreement that expires in February 2030.
The Company's operating lease of retail space in Miami, FL expires November 30, 2026. The lease includes an option to extend the lease term for the entire space for a period of five years at the end of the current lease term. At December 31, 2024, the renewal option is not included in the related operating right of use asset recorded. The Company had been subleasing this retail space to a third party since the third quarter of 2023. The Company received notification from the sublessor in March 2025 of its intention to exit the sublease. In July 2025, the Company began subleasing the retail space to a new third party with the new sublease agreement effective through November 30, 2026 and containing one option to renew for five more years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 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.