21. Leasing
The Group has entered into several leases for vehicles and machinery as well as office spaces. The leases have lease terms of three to five years.
The development of the lease liabilities is as follows:
| in thousand EUR | 2023 | 2022 | ||
|---|---|---|---|---|
| At 1 January | 1 598 | 1 802 | ||
| Additions | 172 | 854 | ||
| Interest expenses | 88 | 127 | ||
| Redemption | –512 | –639 | ||
| Payments | –492 | –559 | ||
| Currency effects | 10 | 13 | ||
| At 31 December | 864 | 1 598 | ||
| Thereof current | 560 | 856 | ||
| Thereof non-current | 304 | 742 |
The cash-outflow on leases is presented in Note 19.
Right-of-use assets
| in thousand EUR | Leased buildings and building improvements |
Leased machinery and vehicles |
Total |
|||
|---|---|---|---|---|---|---|
| At 1 January 2022 | 386 | 1 437 | 1 823 | |||
| Additions | – | 854 | 854 | |||
| Depreciation | –140 | –948 | –1 088 | |||
| Currency effects | 13 | 1 | 14 | |||
| At 31 December 2022 | 259 | 1 344 | 1 603 | |||
| Additions | – | 172 | 172 | |||
| Depreciation | –128 | –792 | –920 | |||
| Currency effects | 9 | 1 | 10 | |||
| At 31 December 2023 | 140 | 725 | 865 | |||
As of 31 December, other operating expenses contain the following expenses in connection with leases:
| in thousand EUR | 2023 | 2022 | ||
|---|---|---|---|---|
| Expenses for short-term leases | 431 | 360 | ||
| Expenses for leases of low value | 4 | 4 | ||
| Total operating lease expenses | 435 | 364 |
The cash-outflow on short-term leases and leases of low value is EUR 0.4 million (2022: EUR 0.4 million).
Accounting policies
Precious Woods elected to apply the recognition exemptions to short-term leases and low value leases. For such leases no right-of-use asset and no lease liability are recorded, instead the lease payments are recognized as operating expenses.