Leases
The components of the right-of-use assets and lease liabilities were as follows (in thousands):
| | | | | | | | | | | | | | | | |
| Balance Sheet Classification | December 31,
2025 | | December 31,
2024 | | |
| Operating right-of-use assets, net | Operating lease right-of-use assets | $ | 3,451 | | | $ | 2,855 | | | |
| | | | | | |
| Current operating lease liabilities | Accrued expenses and other current liabilities | $ | 968 | | | $ | 1,346 | | | |
| Non-current operating lease liabilities | Operating lease liabilities | 2,910 | | | 2,627 | | | |
| Total operating lease liabilities | | $ | 3,878 | | | $ | 3,973 | | | |
| | | | | | |
| Weighted-average remaining lease term (in years) | | 4.1 | | 2.7 | | |
| Weighted-average discount rate | | 7.0 | % | | 9.0 | % | | |
The components of lease costs included in operating costs and expenses were as follows (in thousands):
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| | | |
| Operating lease costs | $ | 1,287 | | | $ | 1,578 | |
| Gain on early lease termination | $ | 443 | | | $ | — | |
| Impairment of operating lease right-of-use assets | $ | — | | | $ | 138 | |
Supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| | | |
| Operating cash flows related to operating leases | $ | 1,476 | | | $ | 1,636 | |
| Operating right-of-use assets obtained in exchange for lease liabilities | $ | 2,042 | | | $ | — | |
The future minimum payments under operating leases were as follows at December 31, 2025 (in thousands):
| | | | | |
| 2026 | $ | 1,198 | |
| 2027 | 1,061 | |
| 2028 | 798 | |
| 2029 | 822 | |
| 2030 | 559 | |
| Thereafter | — | |
| Total minimum operating lease payments | 4,438 | |
| Less: amounts representing interest | (560) | |
| Present value of net minimum operating lease payments | 3,878 | |
| Less: current portion | (968) | |
| Long-term portion of operating lease obligations | $ | 2,910 | |
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.