20. Leases
Total Lease Cost
The components of rent expense, which are primarily included in selling, general and administrative expenses in the Company's consolidated statements of operations and comprehensive loss, were as follows:
Years Ended December 31,
2025
2024
(in thousands)
Operating lease expense
$
1,467 
$
1,399 
Variable lease expense
657 
341 
Short-term lease expense
36 
138 
Sublease income
(79)
— 
Total rent expense
$
2,081 
$
1,878 

Supplemental Balance Sheet Information
As of December 31, 2025 and 2024, supplemental operating lease balance sheet information consisted of the following:
December 31,
December 31,
2025
2024
(in thousands)
Operating lease right of use assets - net
$
3,418 
$
4,029 
Operating lease liabilities:
Other current liabilities
$
769 
$
775 
Operating lease liabilities
7,579 
8,048 
Total operating lease liabilities
$
8,348 
$
8,823 
Other Supplemental Information
Other supplemental operating lease information consisted of the following for the years ended December 31, 2025 and 2024:
Years Ended December 31,
2025
2024
(dollars in thousands)
Operating cash flows for operating leases
$
1,232 
$
1,102 
ROU assets obtained in exchange for new lease liabilities
$
— 
$
5,450 
Weighted average remaining lease term (in years)
8.71
9.03
Weighted average discount rate
10.15 
%
10.15 
%

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 20, 2025
2023Mar 20, 2024
2022Mar 23, 2023

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.