Note 15. Leases
We lease office facilities from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 8 years. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 10 additional years. In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that we will exercise that option. Our leases generally do not contain any material restrictive covenants.
Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease expense are as follows: | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 1,356 | | $ | 1,651 | | $ | 2,123 |
| Variable lease cost | 54 | | 55 | | 129 |
| $ | 1,410 | | $ | 1,706 | | $ | 2,252 |
Supplemental cash flow information related to leases is as follows: | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in measurement of lease liabilities: | | | | | |
| Operating cash outflows for operating leases | $ | 1,083 | | $ | 1,674 | | $ | 1,854 |
| Right-of-use assets obtained in exchange for new lease obligations: | | | | | |
| Operating leases | $ | 858 | | $ | 1,530 | | $ | 807 |
The following table presents lease-related assets and liabilities recorded on the balance sheet.
| | | | | | | | | | | | | | | | | |
| | | December 31, |
| Financial Statement Line Item | | 2025 | | 2024 |
| Operating lease right-of-use assets | Other assets | | $ | 1,783 | | $ | 2,211 |
| | | | | |
Operating lease liabilities, current | Accrued expenses and other current liabilities | | $ | 734 | | $ | 826 |
| Operating lease liabilities, non-current | Other liabilities | | 1,149 | | 1,412 |
| Total operating lease liabilities | | | $ | 1,883 | | $ | 2,238 |
Other information related to operating leases is as follows: | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Weighted average remaining lease term | 3.6 years | | 4.0 years | | 2.6 years |
| Weighted average discount rate | 8.7% | | 8.7% | | 8.6% |
Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the Consolidated Balance Sheets as of December 31, 2025, is as follows:
| | | | | |
| Lease
Payments |
| 2026 | $ | 875 | |
| 2027 | 445 | |
| 2028 | 286 | |
| 2029 | 222 | |
| 2030 | 221 | |
| Thereafter | 150 | |
| Total lease payments | 2,199 | |
| Less imputed interest | (316) | |
| Total present value of lease liabilities | $ | 1,883 | |
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.