8. LEASES

 

The Company’s non-cancellable operating leases consist of leases for office space. The Company is the lessee under the terms of the operating leases. For the year ended December 31, 2025, the operating lease cost was $0.22 million.

 

The Company’s operating leases have remaining lease terms of approximately 17 months. As of December 31, 2025, the weighted average remaining lease term and weighted average discount rate were 1.40 years and 4.90%, respectively.

 

Maturities of lease liabilities were as follows:

 

   Operating 
As of December 31, 2025  Lease 
From January 1, 2026 to December 31, 2026  $178,762 
From January 1, 2027 to December 31, 2027   31,252 
Total  $210,014 
Less: amounts representing interest  $4,662 
Present Value of future minimum lease payments   205,352 
Less: Current obligations   174,423 
Long-term obligations  $30,929 

 

The Company leases office space and equipment under various short-term operating leases. As permitted by ASC 842, the Company has elected the practical expedient for short-term leases, whereby lease assets and lease liabilities are not recognized on the balance sheet. Short-term leases cost was nil for the year ended December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Apr 15, 2025
2023Apr 16, 2024
2022Apr 19, 2023
2021Apr 15, 2022
2020Apr 15, 2021
2018Sep 3, 2019
2017Apr 16, 2018
2016Apr 17, 2017
2015Nov 28, 2016

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.