Leases
In the first quarter of 2025, the Board decided to exit our corporate headquarters at 701 Veterans Circle, Warminster, Pennsylvania. The lease for this property expires on April 30, 2027 and was the Company’s sole operating lease as of December 31, 2025.
The Company accounts for its lease under ASC 842, Leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company determines if an arrangement is a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term. The lease does not provide an implicit rate so in determining the present value of lease payments, the Company utilized its incremental borrowing rate for the lease, which was 9.0%. The Company recognizes lease expense on a straight-line basis over the remaining lease term.
During the years ended December 31, 2025 and 2024, the Company incurred total operating lease expenses of $0.3 million and $0.7 million, respectively, which included lease expenses associated with fixed lease payments of $0.2 million and $0.5 million, respectively, and variable payments associated with common area maintenance and similar expenses of $0.1 million and $0.2 million, respectively.
Weighted average remaining lease term and discount rate were as follows:
| | | | | |
| As of December 31, 2025 |
| Weighted-average remaining lease term (years) | 1.3 |
| Weighted average discount rate | 9.0% |
The Company did not include options to extend its lease terms as part of its ROU asset and lease liabilities.
Supplemental cash flow information related to the Company’s operating lease was as follows:
| | | | | | | | | | | |
| Twelve Months Ended December 31, |
| 2025 | | 2024 |
| (in thousands) |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 634 | | | $ | 616 | |
| | | |
Future minimum lease payments under the Company’s operating lease as of December 31, 2025 were as follows:
| | | | | |
| As of December 31, 2025 |
| (in thousands) |
| 2026 | $ | 654 | |
| 2027 | 133 | |
| 2028 | — | |
| 2029 | — | |
| 2030 | — | |
| Thereafter | — | |
| Total lease payments | $ | 787 | |
| Less: interest | (41) | |
| Present value of lease payments | $ | 746 | |