Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 40

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 15
Chunk 40
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 rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used its incremental borrowing rate as of January 1, 2019 for operating leases that commenced prior to that date. As of January 1, 2019, the Company’s incremental borrowing rate was 5.25%. For leases commencing after January 1, 2019 the Company uses its incremental borrowing rate at time of commencement. On September 1, 2022, June 1, 2023, and September 23, 2024, the Company’s incremental borrowing rate was 5.50%, 7.25%, and 6.25%, respectively. The weighted average remaining lease term for operating leases is 3.2 years and the weighted average discount rate is 5.50% as of December 31, 2024. The weighted average remaining lease term for operating leases was 4.1 years and the weighted average discount rate was 5.35% as of December 31, 2023. Lease expense for leases determined to be operating leases is recognized on a straight-line basis over the lease term. For both 2024 and 2023, lease expense was approximately $0.8 million. Cash paid for operating leases in 2024 and 2023 was $0.9 million and $0.8 million, respectively. The Company had no short-term or variable leases in 2024 or 2023.

F-19

The lease expense for each location are as follows (in thousands): 

        December 31,

        December 31,

        2024

        2023

        Del Mar, CA
         
        $
        160

        $
        163

        Hayward, CA

        361

        361

        San Diego, CA

        144

        144

        Edwardsville, IL

        116

        113

        Total
         
        $
        781

        $
        781

       As of December 31, 2024, undiscounted future minimum lease payments related to leases that have initial or remaining lease terms in excess of one year are as follows (in thousands): 

        2025
         
        $
        807

        2026

        829

        2027

        573

        202