Note 14 - Leases

12 Months Ended

Dec. 31, 2025

Note 14 – Leases

UTMD has operating leases for a portion of its parking lot at its Midvale facility and an automobile at its Ireland facility. The remaining lease term on the parking lot is less than 6 years, and on the automobile is 18 months. There are no options to extend or terminate the leases. The parking lot lease contains a provision that requires an adjustment every five years to the lease payment based on the change in the Consumer Price Index. This adjustment occurred in 2021 requiring an increase of $87 to the value of the right-of-use asset and lease liabilities. UTMD has no other leases yet to commence. As neither lease contains implicit rates, UTMD’s incremental borrowing rate, based on information available at adoption date, was used to determine the present value of the leases.

Operating lease costs for the years ended December 31, 2025, 2024, and 2023 were $67, $66, and $65, respectively.

Supplemental balance sheet information related to operating leases was as follows (in thousands):

	As of December 31, 2025
Operating lease right-of-use assets	`$286`
Operating lease liabilities, current (included in Accrued Expenses)	`60`
Operating lease liabilities, long-term	`226`
Total operating lease liabilities	`$286`

Maturities of operating lease liabilities at December 31, 2025 were as follows (in thousands):	As of December 31, 2025
2026 (less imputed interest)	`$60`
2027 (less imputed interest)	`56`
2028 (less imputed interest)	`45`
2029 (less imputed interest)	`46`
2030 (less imputed interest)	`47`
Thereafter (less imputed interest)	`32`
Total lease payments	`$307`
Less: imputed interest	`(21)`
Total lease liabilities	`$286`

The following table provides information on the lease terms and discount rates:

Weighted-average remaining lease term (in years)	5.1
Weighted-average discount rate	4.1%