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Note 13 - Leases

3 Months Ended

Mar. 31, 2026

13. Leases

We lease datacenters, corporate offices, warehouses and fiber-optic cables under operating leases. The Company does not have any leases classified as finance leases.

Our leases have remaining lease terms of 1 year to 20 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars):

	*For the Three Months Ended March 31,*
	*2026*		*2025*
Operating lease expense (leases with a total term greater than 12 months)	$	3,524	$	2,253
Short-term lease expense (leases with a total term of 12 months or less)		20		6
Variable lease expense		523		112
Total lease expense	$	4,067	$	2,371

Lease expense is presented in general and administrative expenses and network expenses within our Condensed Consolidated Statements of Operations and Comprehensive Loss.

Variable lease payments are determined based on specific terms and conditions outlined in the lease agreements. These may include payments for utilities, which are based on actual usage, and maintenance costs, which are determined based on expenses incurred.

Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):

	*For the Three Months Ended March 31,*
Supplemental cash flow information:	*2026*		*2025*
Operating lease - operating cash flows (fixed payments)	$	3,017	$	2,112
Operating lease - operating cash flows (liability reduction)	$	1,615	$	1,551
New right of use assets - operating leases	$	14,367	$	5,084

Supplemental balance sheet information related to leases:	*March 31, 2026*			*December 31, 2025*
Weighted average discount rate		8.86	%		8.79	%
Weighted average remaining lease term	15.62 yrs			15.32 yrs

Maturity of lease liability as of March 31, 2026 (Dollar amounts in thousands of U.S. dollars):

	*March 31, 2026*
Remaining of 2026	$	9,236
2027		11,455
2028		10,880
2029		11,410
2030		6,269
Thereafter		86,411
Total future lease payments		135,660
Less imputed interest		64,430
Total	$	71,230

Operating lease payments include payments under the non-cancellable term, without any additional amounts related to options to extend lease terms that are reasonably certain of being exercised.

We have agreements with several third-party network partners who construct and operate fiber networks used to deliver our internet services. Under these arrangements, the partners build and activate new serviceable addresses each month. The financial terms of these arrangements may include fixed fees, variable fees, or a combination of both. The partners control and manage the construction. We do not control the construction process and are therefore not considered the owner during buildout. The leases for these addresses will commence once the lessor makes the underlying assets available for our use, to deliver services to our customers.

The Company has elected to use the single exchange rate approach when accounting for lease modifications. Under the single exchange rate approach, the entire right of use asset is revalued at the date of modification in the Company’s functional currency provided the re-measurement is not considered a separate contract or if the re-measurement is related to change the lease term or assessment of a lessee option to purchase the underlying asset being exercised.