Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 8

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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,545                        ( 38,797  
  Property and equipment, net                         $                    54,454      $                   55,582  

At September 30, 2025, the Company did nothave any significant fixed contractual commitments for construction projects.

Avalon reviews the carrying value of its long-lived assets whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. If indicators of impairment exist, Avalon would determine whether the estimated undiscounted sum of the future cash flows of such assets and their eventual disposition is less than its carrying amount. If less, an impairment loss would be recognized if, and to the extent that the carrying amount of such assets exceeds their respective fair value. Avalon would determine the fair value by using quoted market prices, if available, for such assets; or if quoted market prices are not available, Avalon would discount the expected estimated future cash flows. During the first nine months of 2025 and 2024, no triggering events were present.

Note 7. Leases

Operating Leases

Avalon leases golf carts, machinery and equipment for the landfill operations, furniture and fixtures for The Grand Resort and office copiers under operating leases. Our operating leases have remaining lease terms ranging from less than1year to4.0years. The weighted average remaining lease term on operating leases was approximately2.7years and4.0years at September 30, 2025 and December 31, 2024, respectively.

During the first nine months of 2025, the Company did not record any new operating lease right-of-use assets or corresponding obligations under operating leases. During the first nine months of 2024, the Company entered into a new operating lease agreement for golf carts and GPS equipment. During the first nine months of 2024, the Company recorded operating lease right-of-use assets and corresponding obligations under the operating leases of approximately $684,000.

Leased property and associated obligations under operating leases at September 30, 2025 and December 31, 2024 consists of the following (in thousands):

                                                               September 30,                 December 31,             
                                                               2025                          2024                     
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating lease right-of-use assets                          $                  1,078      $                 1,383  
  Current portion of obligations under operating leases        $                    363      $                   365  
  Long-term portion