Leases
The Company has a real estate lease for the use of office space.
The table below presents information related to the operating leases:
| | | | | | | | | | |
| As of December 31, | | |
| 2025 | 2024 | | |
| Operating lease costs during the period (1) | $ | 562 | | $ | 431 | | | |
| Cash payments included in the measurement of operating lease liabilities during the period (2) | – | | 916 | | | |
| Operating lease liability arising from obtaining lease right-of-use assets during the period | – | | 2,583 | | | |
| Weighted-average remaining lease term (in years) as of period-end | 4.92 | 5.92 | | |
| Weighted-average discount rate during the period | 10.90% | 10.90% | | |
|
| (1) For the year ended December 31, 2024, operating lease costs is presented net of sublease income that is not material. |
(2) For the year ended December 31, 2025, there were no cash payments included in the measure of operating lease liabilities during the period since the Company has a deferral period through December 2025 before any cash payments are required under a lease with an effective date of April 1, 2024 with an initial lease term of 6.67 years. |
The Company generally utilizes its incremental borrowing rates on a collateralized basis, reflecting the Company’s credit quality and the term of the lease at the commencement of the lease in determining the present value of future payments since the implicit rate for the Company’s leases is not readily determinable.
Variable lease expense includes rental increases that are not fixed, such as those based on amounts paid to the lessor based on cost or consumption, such as maintenance and utilities.
The components of operating lease costs were as follows:
| | | | | | | | | | |
| | As of December 31, |
| | | 2025 | 2024 |
| Operating lease costs included in: | | | | |
| General and administrative | | | $ | 562 | | $ | 884 | |
| Total operating costs | | | 562 | | 884 | |
| Less sublease income | | | – | | (453) | |
| Total operating lease costs | | | $ | 562 | | $ | 431 | |
Maturities of the operating lease liability as of December 31, 2025 are summarized as follows:
| | | | | |
| Years Ending December 31, | |
| 2026 | $ | 652 | |
| 2027 | 652 | |
| 2028 | 652 | |
| 2029 | 652 | |
| 2030 | 597 | |
| Thereafter | – | |
| Minimum lease payments | 3,205 | |
| Less imputed interest | (732) | |
| Present value of operating lease liabilities | $ | 2,473 | |
| Current portion of operating lease liabilities | $ | 402 | |
| Long-term portion of operating lease liabilities | 2,071 | |
| Total operating lease liabilities | $ | 2,473 | |
Sublease Agreement – The Company entered into agreements to sublease certain space that it does not occupy, through the duration of the lease terms, with one sublease that expired in September 2024 and two other subleases (these operating leases were recorded as an assumed lease liability in connection with the acquisition of Men’s Journal) that expired in March 2025.
Lease Termination – Effective September 30, 2021, the Company terminated a certain lease arrangement for office space. In connection with the termination, the Company agreed to pay the landlord cash payments and credits for market rate advertising, where $4,000 of cash payments were paid during the year ended December 31, 2024, and market rate advertising of $800 recognized during the year ended December 31, 2024, leaving no further obligations related to the lease termination. No amounts were paid or recognized during the year ended December 31, 2025, and there are no remaining obligations related to the lease termination as of December 31, 2025.