10.

Leases

 

The Company’s continuing operations has operating leases for offices in the U.S. and China. Total expenses incurred under these operating leases for the years ended December 31, 2024 and 2025 were $267 and $281, respectively. Total expenses incurred under short-term leases for the years ended December 31, 2024 and 2025 were $31 and $1, respectively. The short-term lease commitments were nil as of December 31, 2025.

 

Maturities of operating lease liabilities as of December 31, 2025 are as follows:

 

   

$

 
         

Year ending December 31, 2026

    332  

Total lease payments

    332  

Less: imputed interest

    (12 )
         

Present value of lease liabilities

    320  

 

Other supplemental information related to leases is summarized below:

 

   

Year ended December 31,

 
   

2024

   

2025

 

Operating cash flows used in operating lease

  $ 295       410  

 

   

As of December 31,

 
    2024     2025  

Weighted average remaining lease term (years)

    2.16       1.20  

Weighted average discount rate

    5.1 %     5.0 %

  

Historical Timeline

Fiscal YearFiled
2025Mar 25, 2026Showing above
2024Mar 27, 2025

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.