v3.26.1
Right-of-Use Asset and Lease Liabilities
3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
HZO, Inc. and Subsidiaries    
Right-of-Use Asset and Lease Liabilities    
Right-of-Use Asset and Lease Liabilities
8.Right-of-Use Asset and Lease Liabilities

As of March 31, 2026, the Company had leased properties in the U.S. and internationally, with remaining lease terms of 1.3 to 3.9 years, some of which include options to extend the leases for up to 5 years. None of the options to extend the leases are recognized in operating lease ROU assets or lease liabilities. None of the leases include options to terminate the lease.

The components of lease expense recorded in the consolidated statements of operations and comprehensive loss were as follows for the three months ended March 31:

  ​ ​ ​

2026

  ​ ​ ​

2025

Operating lease cost

$

228,983

$

270,541

Finance lease cost:

 

  ​

 

  ​

Amortization of assets

 

13,453

 

13,453

Interest on lease liabilities

 

3,138

 

4,204

Total lease cost

$

245,574

$

288,198

Supplemental balance sheet information related to leases was as follows:

As of

As of

March 31,

December 31,

Leases

  ​ ​ ​

Classification

  ​ ​ ​

2026

  ​ ​ ​

2025

Assets:

 

  ​

 

  ​

 

  ​

Operating lease assets

 

Operating ROU asset, net

$

2,506,855

$

2,675,083

Finance lease assets

 

Property and equipment, net

 

122,507

 

135,959

Total leased assets

 

  ​

$

2,629,362

$

2,811,042

Liabilities:

 

  ​

 

  ​

 

  ​

Current

 

  ​

 

  ​

 

  ​

Operating

 

Operating lease liabilities, current

$

992,031

$

982,996

Finance

 

Accrued expenses and other current liabilities

 

50,251

 

51,401

Non-current

 

  ​

 

  ​

 

  ​

Operating

 

Operating lease liabilities, non-current

 

1,739,595

 

1,931,610

Finance

 

Other liabilities

 

83,204

 

94,855

Total lease liabilities

 

  ​

$

2,865,081

$

3,060,862

Supplemental cash flow and other information related to leases were as follows for the three months ended March 31:

  ​ ​ ​

2026

  ​ ​ ​

2025

 

Cash paid for amounts included in the measurement of lease liabilities:

 

  ​

 

  ​

Operating cash flows from operating leases

$

182,980

$

200,215

Financing cash flows from finance leases

 

12,801

 

11,735

$

195,781

$

211,950

Weighted average remaining operating lease term (in years):

 

  ​

 

  ​

Operating leases

 

3.4

 

4.0

Finance leases

 

2.5

 

3.4

Weighted average operating lease discount rate:

 

  ​

 

  ​

Operating leases

 

8.3

%  

 

8.1

%

Finance leases

 

9.0

%  

 

8.9

%

Maturities of operating lease liabilities were as follows as of March 31, 2026:

  ​ ​ ​

Amount

2026 (remaining)

$

1,011,364

2027

 

1,121,602

2028

 

759,026

2029

 

649,382

2030

 

50,673

Thereafter

 

Total lease payments

$

3,592,047

Less: imputed interest

 

(860,421)

Total lease obligations

 

2,731,626

Less: current obligations

 

(992,031)

Long-term lease obligations

$

1,739,595

Maturities of finance lease liabilities were as follows as of March 31, 2026:

  ​ ​ ​

Amount

2026 (remaining)

$

46,305

2027

 

53,656

2028

 

48,257

2029

 

Total lease payments

$

148,218

Less: imputed interest

 

(14,763)

Total lease obligations

 

133,455

Less: current obligations

 

(50,251)

Long-term obligations

$

83,204

8.

Right-of-Use Asset and Lease Liabilities

As of December 31, 2025, the Company had leased properties in the U.S. and internationally, with remaining lease terms of 1.3 to 4.2 years, some of which include options to extend the leases for up to 5 years. None of the options to extend the leases are recognized in operating lease ROU assets or lease liabilities. None of the leases include options to terminate the lease.

The components of lease expense recorded in the consolidated statements of operations and comprehensive loss were as follows for the year ended December 31:

  ​ ​ ​

2025

  ​ ​ ​

2024

Operating lease cost

$

1,026,354

$

1,118,058

Finance lease cost:

 

  ​

 

  ​

Amortization of assets

 

53,811

 

42,143

Interest on lease liabilities

 

15,247

 

14,387

Total lease cost

$

1,095,412

$

1,174,588

Supplemental balance sheet information related to leases was as follows as of December 31:

Leases

  ​ ​ ​

Classification

  ​ ​ ​

2025

  ​ ​ ​

2024

Assets:

 

  ​

 

  ​

 

  ​

Operating lease assets

 

Operating ROU asset, net

$

2,675,083

$

3,390,744

Finance lease assets

 

Property and equipment, net

 

135,959

 

189,770

Total leased assets

 

  ​

$

2,811,042

$

3,580,514

Liabilities:

 

  ​

 

  ​

 

  ​

Current

 

  ​

 

  ​

 

  ​

Operating

 

Operating lease liabilities, current

$

982,996

$

1,015,052

Finance

 

Accrued expenses and other current liabilities

 

51,401

 

63,759

Non-current

 

  ​

 

  ​

 

  ​

Operating

 

Operating lease liabilities, non-current

 

1,931,610

 

2,635,658

Finance

 

Other liabilities

 

94,855

 

131,009

Total lease liabilities

 

  ​

$

3,060,862

$

3,845,478

Supplemental cash flow and other information related to leases was as follows for the year ended December 31:

  ​ ​ ​

2025

  ​ ​ ​

2024

Cash paid for amounts included in the measurement of lease liabilities:

 

  ​

 

  ​

Operating cash flows from operating leases

$

757,759

 

$

872,460

Financing cash flows from finance leases

$

48,511

 

$

35,199

$

806,270

$

907,659

Weighted average remaining operating lease term (in years):

 

  ​

 

 

  ​

Operating leases

 

3.6

 

 

4.4

Finance leases

 

2.7

 

 

3.6

Weighted average operating lease discount rate:

 

  ​

 

 

  ​

Operating leases

 

8.3

%  

 

8.0

%

Finance leases

 

8.9

%  

 

8.9

%

Maturities of operating lease liabilities were as follows as of December 31, 2025:

  ​ ​ ​

Amount

2026

$

1,323,468

2027

 

1,101,590

2028

 

753,945

2029

 

649,382

2030

 

50,673

Thereafter

 

Total lease payments

$

3,879,058

Less: imputed interest

 

(964,452)

Total lease obligations

 

2,914,606

Less: current obligations

 

(982,996)

Long-term lease obligations

$

1,931,610

Maturities of finance lease liabilities were as follows as of December 31, 2025:

  ​ ​ ​

Amount

2026

$

63,760

2027

 

53,656

2028

 

48,257

2029

 

Total lease payments

$

165,673

Less: imputed interest

 

(19,417)

Total lease obligations

 

146,256

Less: current obligations

 

(51,401)

Long-term obligations

$

94,855