Company: AWX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001437749-25-015162
Chunk: 10

Company: AVALON HOLDINGS CORP
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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31, 2024 there were approximately28.8years remaining on the golf course and related facilities finance lease. The net asset value of finance leases, excluding leasehold improvements was $0.9million and $0.8million at March 31, 2025 and December 31, 2024, respectively.

In addition, the Company also entered into lease agreements for a vehicle, golf course maintenance and restaurant equipment which were determined to be finance leases. At March 31, 2025, the vehicle, golf course maintenance and restaurant equipment have remaining lease terms ranging from less than1year to5.0years. The weighted average remaining lease term on the vehicles and equipment leases was approximately3.8at both March 31, 2025 and December 31, 2024, respectively.

Leased property and associated obligations under finance leases at March 31, 2025 and December 31, 2024 consists of the

following (in thousands):

                                                             March 31,                   December 31,               
                                                             2025                        2024                       
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Leased property under finance leases                       $               13,728      $                  13,554  
  Less accumulated amortization                                             ( 8,057                        ( 7,907  
  Leased property under finace leases, net                   $                5,671      $                   5,647  
  Current portion of obligations under finance leases        $                  232      $                     201  
  Long-term portion of obligations under finance leases                         812                            707  
  Total obligations under finance leases                     $                1,044      $                     908  

The weighted average discount rate on finance leases was6.7% and7.8% at March 31, 2025 at December 31, 2024, respectively.

For the three months ended March 31, 2025 and 2024, components of lease expense were as follows (in thousands):

                                Three Months Ended                              
                                March 31,                                       
                                2025                             2024           
 ────────────────────────────────────────────────────────────────────────────────
  Operating lease cost:                                                         
  Rental expense                $                        51      $          68  
  Finance lease cost:                                                           
  Depreciation expense          $                       147      $         137  
  Interest expense                                       14                  9