Zevia PBC Leases Disclosure
8. LEASES
The Company leases its office space for its corporate headquarters which has a remaining lease term of 12 months. In September 2024, the Company entered into an agreement to sublease 8,468 square feet of the 20,185 square feet of leased office space. The sublease term is from October 8, 2024 to December 31, 2026. The sublease arrangement resulted in impairment of ROU asset and leasehold improvement of $0.3 million and $0.1 million, respectively for the year ended December 31, 2024 and is included in restructuring expense on the consolidated statement of operations and comprehensive loss. The Company determined the impairment using the discounted cash flow of expected receipts from sublease which is considered a level 2 fair value measurement. The level 3 inputs in the calculation were insignificant. The calculated fair value of the sublease was $0.5 million.
The Company’s recognized lease costs include:
| Year Ended December 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Statements of Operations and Comprehensive Loss | ||||||||
| Operating lease cost (1) | $ | 631 | $ | 715 | ||||
| Sublease income (1) | 207 | 52 | ||||||
(1) Operating lease cost and sublease income are recorded within general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss.
| December 31, 2025 | December 31, 2024 | |||||||
| Weighted-average remaining lease term (months) | 12.0 | 24.0 | ||||||
| Weighted-average discount rate | 7.6 | % | 7.6 | % | ||||
The Company’s variable lease costs and short-term lease costs were not material.
The Company is obligated under a non-cancelable lease agreement providing for office space that expires on December 31, 2026. Maturities of lease payments under the non-cancelable lease were as follows:
| (in thousands) | December 31, 2025 | |||
| 2026 | $ | 757 | ||
| Total lease payments | 757 | |||
| Less imputed interest | (89 | ) | ||
| Present value of lease liabilities | $ | 668 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 11, 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.