Leases

12 Months Ended

Dec. 31, 2025

Note 15. Leases

The Company has operating leases for offices, vehicles, and office equipment. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets, and are expensed on a straight-line basis over the lease term.

Right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s lease payments are typically fixed or contain fixed escalators. The Company’s leases typically include certain lock-in periods and renewal options to extend the lease, but when determining the lease term, the Company does not consider options to extend a lease it is not reasonably certain to exercise. The Company elected the practical expedient to not separate the lease and non-lease components of its leases and currently has no leases with options to purchase the leased property.

The components of lease expense were as follows (in thousands):


	Year Ended December 31,
		2024		2025
Operating lease cost		$	2,315	$	1,976
Short-term lease cost			301		306
Variable lease costs			733		570
Total lease expense		$	3,349	$	2,852

Supplemental balance sheet information related to leases were as follows (in thousands, except lease term and discount rate):


	Balance Sheet Caption	December 31, 2024			December 31, 2025
Operating leases:
Operating lease assets	Operating lease assets	$	6,254		$	5,650
Current lease liabilities	Other current liabilities	$	1,232		$	863
Noncurrent lease liabilities	Noncurrent operating lease liabilities	$	8,942		$	8,785
Weighted average remaining lease term (years):
Operating leases			9.69			9.40
Weighted average discount rate:
Operating leases			7.03	%		7.29	%

For the year ended December 31, 2024, as part of the Company's impairment review of its long-lived assets, the Company completed a review of is right-of-use operating assets. The income approach was used to determine the fair value of the operating lease right-of-use assets. Current market rents were calculated by investigating the market for lease rates for facilities comparable to the subject properties. The market rents, less any incentives received, are the net effective market rents. The net effective market rents were projected through the end of the current terms for each location and discounted back to present value using a real estate rate of return based on the property to determine the fair values of each location. These fair values were then compared to the carrying value of the operating lease right-of-use asset values as of September 30, 2024. The carrying value was higher than the computed fair value for five of the eleven locations, resulting in a total impairment of $0.1 million. The Company recorded this impairment as of September 30, 2024 and the loss is included in Impairment expense on the consolidated statements of operations and comprehensive loss for the year ended December 31, 2024. There was no further impairment recognized for the year ended December 31, 2025.

Supplemental cash flow information related to leases were as follows (in thousands):


	Years Ended December 31,
	2024		2025

Cash paid for amounts included in the measurement of lease liabilities	$	1,923	$	1,929
Right-of-use assets obtained on operating lease commencements	$	115	$	667

The Company’s current lease terms range from one to thirteen years and may include options to extend the lease by one to five years.

Remaining maturities on lease liabilities at December 31, 2025 is as follows (in thousands):


	Operating leases
2026		1,526
2027		1,548
2028		1,441
2029		1,260
2030		1,152
Thereafter		6,729
Total lease payments		13,656
Less: interest		(4,008	)
Present value of lease liabilities	$	9,648

Cambium Networks Corp 10-K