Note 9 - Leases

12 Months Ended

Dec. 31, 2025

9. LEASES

Our leases primarily consist of operating leases for certain facilities and office spaces, and financing leases for equipment. Our leases have remaining terms of 1 to 3.2 years and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease assets also include any upfront lease payments made and exclude lease incentives and initial direct cost incurred. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

The following table summarizes our operating and finance lease assets and liabilities as of December 31, 2025 and 2024 (in thousands):

		*December 31,*
	*Balance sheet line item classification*	*2025*		*2024*
Assets
Operating lease assets	Right-of-use assets and other noncurrent assets	$	929	$	149
Finance lease assets	Property and equipment, net of accumulated depreciation		301		349
Total lease assets		$	1,230	$	498
Liabilities
Current
Operating lease obligation	Current portion of finance and operating lease obligations	$	197	$	70
Finance lease obligation	Current portion of finance and operating lease obligations		220		314
Noncurrent
Operating lease obligation	Long-term portion of operating lease obligations		726		101
Total lease liabilities		$	1,143	$	485

The following table summarizes the components of lease expense for the years ended December 31, 2025 and 2024 (in thousands):

		*Year Ended December 31,*
Lease Cost	*Classification*	*2025*		*2024*
Operating lease cost	Selling, general and administrative expenses	$	337	$	192
Finance lease cost:
Amortization of leased assets	Depreciation expense		46		18
Interest on lease liabilities	Interest expense		21		9
Net lease cost		$	404	$	219

Other Leases/Rentals

The Company leases certain buildings and facilities, including office space in Houston, Texas and Monterrey, Mexico. The Company also leases marine bunkering and staging sites in Galveston, Texas, along with certain equipment on a short term basis. Leases which are less than twelve months and have no cancellation penalties are not recorded on the Consolidated Balance Sheets.

Office rent expense totaled approximately $0.3 million and $0.2 million for the years ended December 31, 2025 and 2024, respectively.

The following schedule presents the future minimum lease payments for our operating and finance lease obligations at December 31, 2025 (in thousands):

	*Operating Leases*			*Finance Leases*		*Total*
2026	$	267		$	220	$	487
2027		408			—		408
2028		360			—		360
2029 and Thereafter		3			—		3
Total lease payments		1,038			220		1,258
Less: Interest		(115	)		—		(115	)
Present value of lease liabilities	$	923		$	220	$	1,143

Lease term and discount rates for our operating and finance lease obligations are as follows:

	*December 31,*
Lease Term and Discount Rate	*2025*			*2024*
Weighted-average remaining lease term (years)
Operating leases		2.5			1.7
Finance leases		—			1.0
Weighted-average discount rate
Operating leases		8.2	%		9.5	%
Finance leases		—	%		8.5	%

The following table summarizes the supplemental cash flow information related to leases as of December 31, 2025 and 2024 (in thousands):

Other information	*December 31, 2025*		*December 31, 2024*
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	337	$	187
Financing cash flows from finance leases		94		76
Interest paid		21		9
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	877	$	167
Financing leases		—		347

Time Charter Agreement - Marine Bunkering Vessel

On December 12, 2025, the Company entered into a multi-year time charter agreement for a marine bunkering vessel, the Garibaldi, commencing in 2026. The Company determined that the time charter agreement represents an operating lease with commencement beginning on the delivery date of the Garibaldi, on or about March 1, 2026. At December 31, 2025, no amount was reported on our Consolidated Balance Sheets, as lease commencement had not occurred.