Right-of-Use Asset and Lease Liabilities

6 Months Ended

12 Months Ended

Jun. 30, 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 June 30, 2026, the Company had leased properties in the U.S. and internationally, with remaining lease terms of 0.8 to 3.7 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:



		Six months ended June 30,
		2026			2025
Operating lease cost		$	455,995		$	529,303
Finance lease cost:
Amortization of assets			27,709			26,905
Interest on lease liabilities			6,117			8,151
Total lease cost		$	489,821		$	564,359

Supplemental balance sheet information related to leases was as follows:



				As of			As of
				June 30,			December 31,
Leases		Classification		2026			2025
Assets:
Operating lease assets		Operating ROU asset, net		$	2,335,019		$	2,675,083
Finance lease assets		Property and equipment, net			122,712			135,959
Total leased assets				$	2,457,731		$	2,811,042
Liabilities:
Current
Operating		Operating lease liabilities, current		$	989,854		$	982,996
Finance		Accrued expenses and other current liabilities			53,756			51,401
Non-current
Operating		Operating lease liabilities, non-current			1,555,040			1,931,610
Finance		Other liabilities			80,088			94,855
Total lease liabilities				$	2,678,738		$	3,060,862

Other supplemental information related to leases was as follows:



		Six months ended June 30,
		2026			2025
Weighted average remaining operating lease term (in years):
Operating leases			3.1			4.0
Finance leases			2.3			3.2
Weighted average operating lease discount rate:
Operating leases			8.4	%		8.1	%
Finance leases			8.5	%		8.9	%

Maturities of operating lease liabilities were as follows as of June 30, 2026:



		Amount
2026 (remaining)		$	676,169
2027			1,121,280
2028			758,944
2029			649,382
2030			50,673
Thereafter			—
Total lease payments		$	3,256,448
Less: imputed interest			(711,554)
Total lease obligations			2,544,894
Less: current obligations			(989,854)
Long-term lease obligations		$	1,555,040

Maturities of finance lease liabilities were as follows as of June 30, 2026:



		Amount
2026 (remaining)		$	32,926
2027			58,779
2028			53,379
2029			1,451
Total lease payments		$	146,535
Less: imputed interest			(12,691)
Total lease obligations			133,844
Less: current obligations			(53,756)
Long-term obligations		$	80,088

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