v3.26.3
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases

Note 18. Leases

 

The Group has historically entered into a number of lease arrangements under which it is the lessee. As of June 30, 2026, the SEALSQ Group holds six operating leases which relate to premises.

 

We do not sublease. All our operating leases include multiple optional renewal periods which are not reasonably certain to be exercised.

 

As of June 30, 2026, the Group holds five finance leases relating to IT equipment. During the six months ended June 30, 2026, the Group completed one sale and leaseback transaction relating to IT equipment. The transaction met the criteria for a sale under ASC 606, and, accordingly, the Group derecognized the assets sold and recognized a right-of-use asset and lease liability in accordance with ASC 842. The leaseback arrangements are classified as finance leases.

 

During the six months ended June 30, 2026 and 2025, we recognized rent expenses associated with our leases as follows:

 

   Unaudited
6 months ended June 30,		 
USD’000  2026   2025 
Finance lease cost:        
Amortization of right-of-use assets   37    
-
 
Interest on lease liabilities   2    
-
 
           
Operating lease cost:          
Fixed rent expense   415    178 
Variable lease cost   70    
-
 
Short-term lease cost   
-
    
-
 
Net lease cost   524    178 
Lease cost - Cost of sales   
 
    
-
 
Lease cost - General & administrative expenses   524    178 
Net lease cost   524    178 

 

In the six months ended June 30, 2026 and 2025, we had the following cash and non-cash activities associated with our leases:

 

   Unaudited
6 months ended June 30,		 
USD’000  2026 (unaudited)   2025 
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows from operating leases   415    178 
Financing cash flows from finance leases   39    
-
 
Non-cash investing and financing activities:          
Net lease cost   524    178 
Additions to ROU assets obtained from:          
New operating lease liabilities   
-
    70 
New finance lease liabilities   39    
-
 

The following table provides the details of right-of-use assets and lease liabilities as of June 30, 2026, and as of December 31, 2025:

 

USD’000  As of
June 30,
2026
(unaudited)		   As of
December 31,
2025		 
Right-of-use assets:        
Operating leases   5,874    6,113 
Finance leases   87    126 
Total right-of-use assets   5,961    6,239 
Lease liabilities:          
Operating leases   5,799    6,191 
Finance leases   90    129 
Total lease liabilities   5,889    6,320 

 

As of June 30, 2026, future minimum annual lease payments were as follows.

 

Year (USD’000)  Operating   Finance   Total 
2026   451    28    479 
2027   873    52    925 
2028   853    36    889 
2029   853    9    862 
2030 and beyond   3,586    10    3,596 
Total future minimum operating and finance lease payments   6,616    135    6,751 
Less effects of discounting   (817)   (45)   (862)
Lease liabilities recognized   5,799    90    5,889 

 

As of June 30, 2026 the weighted-average remaining lease term was 7.50 years for operating leases and 2.90 years for finance leases.

 

As leases do not provide an implicit rate, we calculated an estimate rate based upon the estimated incremental borrowing rate of the Group. The weighted average discount rate associated with operating lease as of June 30, 2026 was 3.71%. The weighted average discount rate associated with finance lease as of June 30, 2026 was 2.92%.