Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 39

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 15
Chunk 39
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 rent of $11,266, which increases on an annual basis to $13,180 per month in the final year. In addition, the Company is obligated to pay its share of maintenance costs of common areas.On June 1, 2023, the Company amended its Edwardsville office building lease with David Ludwig, extending the term of the agreement to May 31, 2027 and setting rent amounts for the new term. It provides for an initial monthly base rent of $9,412, which increases on an annual basis to $9,914 per month in the final year.On September 23, 2024, the Company amended its Del Mar office lease with OF 09 Hacienda, LLC, extending the term of the agreement by 24 months to February 28, 2027 and setting rent amounts for the new term. The amended Del Mar office lease provides for an initial monthly base rent of $14,660 beginning March 1, 2025 and increases on an annual basis to $15,099 per month in the final year. The right-of-use assets and lease liabilities for each location are as follows (in thousands): 

        December 31,

        December 31,

        Right-of-use assets:
         
        2024

        2023

        Del Mar, CA
         
        $
        357

        $
        186

        Hayward, CA

        1,236

        1,525

        San Diego, CA

        357

        477

        Edwardsville, IL

        258

        351

        Total right-of-use assets
         
        $
        2,208

        $
        2,539

        December 31,

        December 31,

        Lease liabilities:
         
        2024

        2023

        Del Mar, CA
         
        $
        364

        $
        203

        Hayward, CA

        1,311

        1,594

        San Diego, CA

        381

        498

        Edwardsville, IL

        261

        353

        Total lease liabilities
         
        $
        2,317

        $
        2,648

      The Company’s leases generally do not provide an implicit rate, and, therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest