Leases
A significant portion of the Company's operating lease portfolio includes office space, research and development facilities, IT equipment, and automobiles. The Company's leases have remaining lease terms of one to six years. Substantially all lease expense is presented within general and administrative expense in the consolidated statements of operations and is as follows:
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| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 | | 2023 |
| Total lease expense | $ | 3,516 | | | $ | 2,028 | | | $ | 1,698 | |
Supplemental cash flow information related to leases is as follows:
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| December 31, |
| (in thousands) | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from leases | $ | 3,074 | | | $ | 1,868 | |
| Non-cash amounts included in the measurement of lease liabilities: | | | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 2,199 | | | $ | 1,973 | |
Supplemental balance sheet information related to leases is as follows:
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| December 31, |
| 2025 | | 2024 |
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| Weighted-average remaining lease term | 4.4 years | | 4.7 years |
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| Weighted-average discount rate | 7.2 | % | | 6.4 | % |
The following table summarizes future lease payments for operating leases at December 31, 2025:
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| (in thousands) | Operating leases |
| 2026 | $ | 2,450 | |
| 2027 | 1,976 | |
| 2028 | 2,018 | |
| 2029 | 1,918 | |
| 2030 | 1,313 | |
| Thereafter | 138 | |
| Total lease payments | 9,813 | |
| Less: portion representing imputed interest | (1,479) | |
| Total | $ | 8,334 | |
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.