7.
Operating Leases.

The Company has an operating lease agreement for its corporate office that commenced in March 2021 for approximately 10,700 square feet of space. The lease includes an option to extend the lease for up to 5 years and options to terminate the lease within 6 and 7.6 years. The Company has no obligations under finance leases.

The components of lease expense were as follows (in thousands):

 

 

For the Years Ended December 31,

 

 

2025

 

 

2024

 

Operating lease cost

 

$

431

 

 

$

431

 

 

Supplemental cash flow information related to lease was as follows (in thousands):

 

 

For the Years Ended December 31,

 

 

2025

 

 

2024

 

Cash paid for amounts included in the measurement of
   lease liabilities:

 

 

 

 

 

 

Operating cash flows

 

$

537

 

 

$

522

 

Right-of-use assets obtained in exchange for lease
   obligations:

 

 

 

 

 

 

Operating lease

 

$

89

 

 

$

89

 

 

Supplemental balance sheet information related to lease was as follows (in thousands):

 

 

December 31, 2025

 

 

December 31, 2024

 

Operating lease right-of-use assets, net

 

$

1,935

 

 

$

2,230

 

Other current liabilities

 

$

437

 

 

$

402

 

Operating lease liabilities, net of current portion

 

 

2,350

 

 

 

2,786

 

Total operating lease liabilities

 

$

2,787

 

 

$

3,188

 

 

As of December 31, 2025 and December 31, 2024, the weighted average remaining lease term was 5.3 years and 6.3 years, respectively. The weighted average discount rate used to determine the operating lease liabilities was 4.5% as of December 31, 2025 and 2024.

Remaining payments of lease liabilities as of December 31, 2025 were as follows (in thousands):

 

 2026

 

 

553

 

 2027

 

 

570

 

 2028

 

 

587

 

 2029

 

 

605

 

 2030

 

 

623

 

Thereafter

 

 

212

 

Total lease payments

 

 

3,150

 

Less: imputed interest

 

 

(363

)

Total

 

$

2,787

 

 

Rent expense was approximately $0.4 million for each of the years ended December 31, 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Mar 15, 2023
2021Mar 16, 2022
2020Mar 15, 2021
2019Mar 16, 2020

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.