Leases
All of our operating lease ROU assets and operating lease liabilities relate to facilities leases. Our leases generally have initial noncancelable terms ranging from three to six years and may include one or more options to renew. These renewal terms can extend the lease for an additional three to five years and are included in the lease term when it is reasonably certain that we will exercise the option. We do not currently have leases with residual value guarantees or leases not yet commenced to which we have committed. Our operating lease liabilities have been measured by discounting future lease payments using our incremental borrowing rate as rates implicit in the leases were not readily determinable. We pay a pro rata share of operating costs, insurance costs, utilities and real property taxes, all of which are variable lease costs. We did not have any material short-term lease costs during the years ended December 31, 2025 and 2024.
During the year ended December 31, 2024, we recorded additional ROU assets and operating lease liabilities of $605 and $597, respectively, related to our exercise of options to extend existing facility leases. There have been no material changes related to our existing lease agreements during the year ended December 31, 2025.
The components of lease expense, which are included in general and administrative expenses in these consolidated statements of operations and comprehensive loss, consist of the following:
| | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 |
| Operating lease costs | | $ | 288 | | | $ | 297 | |
| Variable lease costs | | 63 | | | 64 | |
| | | | |
| Total lease expense | | $ | 351 | | | $ | 361 | |
Supplemental cash flow information related to operating leases is as follows:
| | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | |
| Operating cash flows used for operating lease liabilities | | $ | 293 | | | $ | 253 | |
Future minimum operating lease liabilities as of December 31, 2025 are presented in the following table. Variable lease costs are not included in these payments:
| | | | | | | | |
| 2026 | | $ | 255 | |
| 2027 | | 169 | |
| 2028 | | 177 | |
| 2029 | | 92 | |
| Total future minimum lease payments | | 693 | |
| Less: Interest | | 130 | |
| Present value of operating lease liabilities | | $ | 563 | |
Other information regarding our operating leases is as follows:
| | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term in years | | 3.1 | | 3.8 |
| Weighted-average discount rate | | 15.0 | % | | 15.0 | % |
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.