📝 ASC 842 Disclosure Generator

Note X: Leases

General

Acme Corporation (the "Company") determines if an arrangement is a lease at inception. The Company has operating and finance leases for corporate offices, warehouses, retail locations, vehicles, and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.

Lease Costs

The components of lease expense for the year ended December 31, 2024:

Lease Cost	2024
Operating lease cost	$1,245,680
Finance lease cost - amortization	$187,450
Finance lease cost - interest	$42,890
Short-term lease cost	$34,560
Variable lease cost	$89,230
Total lease cost	$1,599,810

Balance Sheet Information

Operating Leases	Dec 31, 2024
ROU assets	$3,456,780
Current liabilities	$845,230
Non-current liabilities	$2,689,450
Total operating lease liabilities	$3,534,680

Finance Leases	Dec 31, 2024
ROU assets, net	$632,670
Current liabilities	$198,450
Non-current liabilities	$482,550
Total finance lease liabilities	$681,000

Weighted Average Term and Discount Rate

Remaining term - operating leases	4.8 years
Remaining term - finance leases	3.2 years
Discount rate - operating leases	5.25%
Discount rate - finance leases	6.10%

Maturity Analysis

Future minimum lease payments as of December 31, 2024:

Year	Operating	Finance
2025	$978,450	$215,670
2026	$923,780	$198,450
2027	$856,340	$178,900
2028	$645,230	$112,340
2029	$423,560	$45,670
Thereafter	$234,780	$—
Total undiscounted	$4,062,140	$751,030
Less: imputed interest	($527,460)	($70,030)
Total lease liabilities	$3,534,680	$681,000