LEASESThe Company’s lessee arrangements consist of agreements to lease certain office facilities and equipment and the Company’s lessor arrangements consist of leases of portions of land to third parties for agriculture or other miscellaneous uses. The Company’s agricultural land lease agreements are generally short-term in nature. As of December 31, 2025, all leasing arrangements are classified as operating leases and do not contain residual value guarantees or material restrictions.
The Company’s office leases have remaining lease terms of approximately three years to four years and include one or more Company options to extend the leases for up to five years and one of which includes a landlord option to terminate the lease 18 months subsequent to written notice to the Company. The Company only includes renewal options in the lease term when it is reasonably certain that it will exercise such options.
The components of lease costs were as follows for the years ended December 31, 2025, 2024 and 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 3,729 | | | $ | 702 | | | $ | 1,276 | |
| Related party operating lease cost | | — | | | 2,892 | | | 3,154 | |
| Short-term lease cost | | 279 | | | 736 | | | 472 | |
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 were as follows (in thousands, except lease term in years and discount rate): | | | | | | | | | | | | | | |
| | 2025 | | 2024 |
Operating lease right-of-use assets | | $ | 11,343 | | $ | 12,973 |
Operating lease liabilities | | $ | 9,989 | | $ | 10,980 |
| Weighted average remaining lease term (operating lease) | | 3.2 | | 4.1 |
| Weighted average discount rate (operating lease) | | 6.7 | % | | 6.7 | % |
Operating lease right-of-use assets are included in other assets and operating lease liabilities are included in accounts payable and other liabilities on the consolidated balance sheets.
The table below reconciles the undiscounted cash flows to operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2025 (in thousands): | | | | | | | | |
| Years Ending December 31, | | Rental
Payments |
| 2026 | | $ | 3,361 | |
| 2027 | | 3,502 | |
| 2028 | | 3,605 | |
| 2029 | | 673 | |
| 2030 | | — | |
| Thereafter | | — | |
| Total lease payments | | $ | 11,141 | |
| Discount | | $ | 1,152 | |
| Total operating lease liabilities | | $ | 9,989 | |
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.