13. Leases
In May 2025, the Company entered into a noncancelable operating sublease agreement with Nano Dimension USA Inc. (“Sublandlord”) whereby the Company sublets approximately 25,000 square feet of office space located in Waltham, Massachusetts (“Waltham Sublease”). The sublease commencement date was June 1, 2025, with an initial term of 45 months. Lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate when measuring operating lease liabilities as discount rates were not implicit or readily determinable. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.
As of December 31, 2025, the Company had $1.5 million of operating lease ROU assets, short term lease liabilities of $0.4 million and long term lease liability of $1.2 million on its consolidated balance sheets. As of December 31, 2025, the
operating lease arrangement had a remaining lease term of 3.2 years and a discount rate of 10.6%. Cash paid for amounts included in the measurement of operating lease liabilities within operating cash flows was $0.1 million.
The table below summarizes the Company’s lease costs for the twelve months ended December 31, 2025 and during the period from September 19, 2024 (inception) through December 31, 2024:
| | | | | | | | | | | | | | |
| Lease Costs | | Twelve Months Ended December 31, 2025 | | Period from September 19, 2024 (Inception) Through December 31, 2024 |
| Operating lease cost | | $ | 324 | | | $ | — | |
| Short-term lease cost | | 43 | | | — | |
| Total lease costs | | $ | 367 | | | $ | — | |
As of December 31, 2025, the total remaining operating lease payments included in the measurement of lease liabilities was as follows (in thousands):
| | | | | |
| Period ended December 31 | |
| 2026 | 584 | |
| 2027 | 609 | |
| 2028 | 633 | |
| 2029 | 107 | |
| Total undiscounted lease payments | 1,933 | |
| Less: imputed interest | (289) | |
| Total present value of operating lease liability | $ | 1,644 | |
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.