7. Leases
The below table presents the lease related assets and liabilities recorded on the accompanying balance sheet:
| | | | | | | | | | | | | | | | | |
| | | As of December 31, |
| (Amounts in thousands) | Balance Sheet Caption | | 2025 | | 2024 |
| Assets: | | | | | |
| Operating lease right-of-use assets | Right-of-use asset | | $ | 4,678 | | | $ | 1,387 | |
| | | | | |
| Total leased assets | | | $ | 4,678 | | | $ | 1,387 | |
| Liabilities: | | | | | |
| Operating lease liabilities | Lease liabilities | | $ | 4,629 | | | $ | 4,081 | |
| | | | | |
| Total lease liabilities | | | $ | 4,629 | | | $ | 4,081 | |
The components of operating lease costs, included within general and administrative expenses within the consolidated statements of operations and comprehensive loss, were as follows:
| | | | | | | | | | | |
| Year Ended December 31, |
| (Amounts in thousands) | 2025 | | 2024 |
| Operating lease cost | $ | 3,390 | | | $ | 8,903 | |
| Short-term lease cost | 1,050 | | | 512 | |
| Variable lease cost | 733 | | | 906 | |
| Total operating lease cost | $ | 5,173 | | | $ | 10,321 | |
Supplemental cash flow and non-cash information related to leases were as follows:
| | | | | | | | | | | |
| Year Ended December 31, |
| (Amounts in thousands) | 2025 | | 2024 |
| Cash paid for amounts included in measurement of operating lease liabilities | $ | 4,845 | | | $ | 8,668 | |
| Right-of-use assets obtained in exchange for lease liabilities: | | | |
| Operating lease right-of-use assets recognized | $ | 4,996 | | | $ | 1,261 | |
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | |
| Year Ended December 31, |
| (Amounts in thousands) | 2025 | | 2024 |
| Operating leases | | | |
| Weighted average remaining lease term (in years) | 3.8 | | 1.3 |
| Weighted average discount rate | 10.0 | % | | 5.4 | % |
As of December 31, 2025, the Company held no finance leases, and the maturity analysis of operating lease liabilities are as follows:
| | | | | | | |
| (Amounts in thousands) | Operating Leases | | |
| 2026 | $ | 1,781 | | | |
| 2027 | 1,405 | | | |
| 2028 | 1,105 | | | |
| 2029 | 1,088 | | | |
| 2030 and beyond | 147 | | | |
| | | |
| Total lease payments | 5,526 | | | |
| Less amount representing interest | (897) | | | |
| Total lease liabilities | $ | 4,629 | | | |
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.