Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 9

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 of obligations under operating leases                           715                        1,018  
  Total obligations under operating leases                     $                  1,078      $                 1,383  

The weighted average discount rate on operating leases was6.7% and6.6% at September 30, 2025 and December 31, 2024, respectively.

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 September 30, 2025 there were approximately28.1years remaining on the golf course and related facilities finance lease. At December 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 $1.6million and $0.8million at September 30, 2025 and December 31, 2024, respectively.

In addition, the Company also entered into lease agreements for a vehicle, golf course maintenance equipment and the captive landfill operations entered into lease agreements for equipment which were determined to be finance leases. At September 30, 2024, the vehicles, golf course maintenance and restaurant equipment and the landfill operations equipment have remaining lease terms ranging from less than1year to4.9years. The weighted average remaining lease term on the vehicles and equipment leases was approximately4.0and3.8years at September 30, 2025 and December 31, 2024.

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

                                                             September 30,                   December 31,               
                                                             2025                            2024                       
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