Company: AWX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001437749-25-015162
Chunk: 9

Company: AVALON HOLDINGS CORP
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 of 2025 and 2024, no triggering events were present.

Note 7. Leases

Operating Leases

Avalon leases golf carts and associated GPS equipment, furniture and fixtures for The Grand Resort and office copiers under operating leases. Our operating leases have remaining lease terms ranging from less than1year to5.0years. The weighted average remaining lease term on operating leases was approximately3.6years and4.0years at March 31, 2025 and December 31, 2024, respectively.

During the first three months of 2025 and 2024 the Company did not record any new operating lease right-of-use assets or corresponding obligations under operating leases.

Leased property and associated obligations under operating leases at March 31, 2025 and December 31, 2024 consists of the following (in thousands):

                                                               March 31,                 December 31,             
                                                               2025                      2023                     
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating lease right-of-use assets                          $              1,391      $                 1,383  
  Current portion of obligations under operating leases        $                364      $                   365  
  Long-term portion of obligations under operating leases                     1,027                        1,018  
  Total obligations under operating leases                     $              1,391      $                 1,383  

The weighted average discount rate on operating leases was6.6% at both March 31, 2025 and December 31, 2024.

Finance Leases

In November 2003, Avalon entered into a long-term agreement with Squaw Creek Country Club to lease and operate its golf course and related facilities. The lease has an initial term of ten(10) years with four(4) consecutive ten(10) year renewal term options unilaterally exercisable by Avalon. Under the lease, Avalon is obligated to pay $15,000in annual rent and make leasehold improvements of $150,000per year. Amounts expended by Avalon for leasehold improvements during a given year in excess of $150,000will be carried forward and applied to future leasehold improvement obligations. Based upon the amount of leasehold improvements already made, Avalon expects to exercise all its remaining renewal options. At March 31, 2025 there were approximately28.6years remaining on the golf course and related facilities finance lease. At December