Leases
The Company is obligated under operating leases for certain real estate and office equipment assets. The Company’s finance leases are not material. Certain leases contained predetermined fixed escalation of minimum rents at rates ranging from 2.5% to 10.0% per annum and remaining lease terms of up to ten years, some of which include renewal options that could extend certain leases to up to an additional five years.

The following table presents supplemental information related to leases:
December 31,
2025
December 31,
2024
Weighted average remaining lease term6.598.06
Weighted average discount rate14.59%13.52%

The table below summarizes total lease costs for the following periods:
Years Ended December 31,
202520242023
Operating lease expense$2,052 $2,139 $1,149 
Variable lease expense160 47 221 
Short-term lease expense58 18 117 
Lease expense$2,270 $2,204 $1,487 
Years Ended December 31,
202520242023
Sublease income (1)
$291 $72 $133 
(1) As of December 31, 2025 and December 31, 2024, the Company has subleased four and two of its real estate leases, respectively.
The following table presents supplemental cash flow and non-cash information related to leases:
Years Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases$2,321 $2,199 $1,430 
Right-of-use assets obtained in exchange for lease obligations - non-cash activity$378 $5,942 $— 

As of December 31, 2025, the future annual minimum lease payments for operating leases are as follows:
2026$2,158 
20271,554 
20281,523 
20291,552 
20301,773 
Thereafter4,219 
Total future minimum lease payments$12,779 
Less: amounts related to imputed interest5,011 
Present value of future minimum lease payments7,768 
Less: current portion of long-term lease liability1,095 
Long-term lease liability$6,673 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 25, 2025
2023Mar 15, 2024
2022Mar 31, 2023
2021Mar 31, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.