Leases
In July 2023, the Company signed a 5.5-year lease for approximately 2,700 square feet of office space in Shelton, Connecticut, (the “Shelton Lease”). The Company had a one-time option to cancel the Shelton Lease after 36 months if it provided written notice before the end of month 30. A payment of approximately $47,000 would have been due at the end of month 36 if the Company exercised this option. This option was not exercised.
Rent expense for both the years ended December 31, 2025 and 2024 were $34,000. Cash paid for operating leases for the years ended December 31, 2025 and 2024 was approximately $68,000 and $38,000, respectively.
The following table summarizes the balance sheet classification of the operating lease asset and related lease liabilities as of December 31, 2025 and December 31, 2024 (in thousands):
December 31,
2025
December 31,
2024
Right-of-use asset, net$96 $122 
Lease liability, current portion31 28 
Lease liability, net of current portion79 110 
$110 $138 
The following variables were used to determine the right-of-use asset and the operating lease liabilities at December 31, 2025 and 2024:
December 31,
2025
December 31,
2024
Weighted average remaining lease term3.2 years4.2 years
Weighted average operating lease discount rate6.4 %6.4 %
Future minimum lease payments under the lease agreement as of December 31, 2025 were as follows (in thousands):
Year ended
2026$37 
202739 
202839 
2029
Total lease payments$122 
Less: Amounts representing interest(12)
Present value of lease liabilities$110 
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Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 13, 2025
2023Mar 14, 2024

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.