SCHMID’s lease obligations primarily relate to rights to buildings mainly for its office, R&D and production premises as well as to leased vehicles. The carrying amounts of right-of-use assets recognized and the movements during the period were as follows:



in € thousand		Real Estate		Vehicles		Total
1/1/2024		8,697		365		9,063
Additions / (De-recognition) to right-of-use assets		(121)		489		367
Depreciation		(1,354)		(293)		(1,647)
Foreign exchange differences		30		(1)		29
12/31/2024		7,253		560		7,812
Additions/(De-recognition) to right-of-use assets		326		220		547
Depreciation		(1,256)		(285)		(1,541)
Foreign exchange differences		(71)		(17)		(88)
12/31/2025		6,253		478		6,730

Since 2023 SCHMID has a sale and leaseback contract with Schmid Grundstücke GmbH Co. KG, an entity controlled by Mrs. Schmid, for production facility and office buildings in Freudenstadt. The purchase price was €11,400 thousand. The lease term is 10 years with an option to extend for up to 15 additional years. A lease payment of €100 thousand (excl. VAT) is due in advance each month. As the sale and leaseback was concluded with a related party, the interest rate implicit in the lease of 6.58% was used.

For other leases SCHMID cannot readily determine the interest rate implicit in the leases, therefore, it uses its incremental borrowing rate (“IBR”) to measure lease liabilities. The IBR is the rate of interest that SCHMID would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBRs used by SCHMID are calculated based on the risk-free rate, individual country risk premiums of underlying country and credit spread. The weighted average IBR on December 31, 2025 is 6.76% (2024: 6.65%).

There are no variable lease payments resulting from indexed rental payments or other variable rental components. The carrying amounts of lease liabilities and the movements during the period were as follows:



in € thousand		Lease Liability
1/1/2024		10,886
Additions		306
Interest		655
Payments		(2,184)
Foreign exchange difference		32
12/31/2024		9,694
Additions		461
Interest		586
Payments		(2,098)
Foreign exchange difference		(94)
12/31/2025		8,550

The consolidated statement of profit or loss and other comprehensive income (loss) included the following amounts of lease related expense:



in € thousand		2025	2024		2023
Depreciation of right of-use assets		(1,540)	(1,649)		(779)
Interest expense on lease liabilities		(585)	(641)		(103)
Short-term lease expenses		(290)	(371)		(383)
Lease expenses for low-value assets		(75)	(40)		(7)
Total amount recognized in expense		(2,490)	(2,701)		(1,273)

The below table provides information on the total cash outflow from all leases during the year:



in € thousand		2025	2024		2023
Principal paid		(1,513)	(1,543)		(715)
Interest paid		(585)	(641)		(103)
Short term and low value leases		(364)	(411)		(391)
Total amount paid		(2,462)	(2,596)		(1,209)

The below table shows a maturity analysis of undiscounted lease payments for which a right-of-use asset and lease liability were recognized:



in € thousand		December 31, 2025		December 31, 2024
≤ 1 year		1,902		2,029
> 1 ≤ 2 years		1,452		1,755
> 2 ≤ 5 years		3,733		3,778
> 5 years		3,600		4,800
Gross lease liabilities – minimum lease payments		10,688		12,361
Discount and foreign currency effects		(2,138)		(2,667)
Present value of the lease liabilities		8,550		9,694

A part of the office and laboratories buildings located at the headquarter are leased to a related party under an operating lease with rent payable on a monthly basis. Lease income from the operating lease where SCHMID is a lessor is recognized in other income on a straight-line basis over the lease term. The lease income per month amounts to €10 thousand and does not include variable lease payments that depend on an index or rate. The lease contract was fixed until March 31, 2022 and is automatically renewed each year for another 12 months if none of the parties terminates the agreement. As a result, the minimum lease payments to be received are €115 thousand in 2025 (2024 : €115 thousand, 2023: €115 thousand). The asset underlying the lease contract is included in property, plant and equipment.

In addition, SCHMID is party to a sublease contract for an office building. SCHMID leases the office from a third party and subleases it to a related party. The lease-out is categorized as operating lease and has an indefinite lease term with a termination option for both parties of six months. The lease income per month amounts to €3 thousand and does not include variable lease payments that depend on an index or rate.