LeasesThe Company leases its operating facilities in Novato, California, under a non-cancelable operating lease through May 31, 2027. There are no options or rights to extend the term of this lease.
The following table reflects the Company’s ROU assets and lease liabilities as of December 31, 2025 and 2024:
| | | | | | | | | | | |
| (in thousands) | December 31, 2025 | | December 31, 2024 |
| Assets: | | | |
| Operating lease ROU assets, net | $ | 573 | | | $ | 935 | |
| Liabilities: | | | |
| Operating lease liabilities, current | $ | 454 | | | $ | 406 | |
| Operating lease liabilities | 203 | | | 657 | |
| $ | 657 | | | $ | 1,063 | |
The following table presents supplemental cash flow information related to the Company’s operating leases for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (in thousands) | | 2025 | | 2024 |
Operating cash flows from operating leases | | $ | 476 | | | $ | 462 | |
As of December 31, 2025, the maturity of operating lease liabilities was as follows:
| | | | | |
| (in thousands) | |
| Year ending December 31: | |
| 2026 | $ | 490 | |
| 2027 | 207 | |
| |
| Total payments | 697 | |
| Less: Interest | (40) | |
| Present value of obligations | $ | 657 | |
The operating lease expense for the years ended December 31, 2025 and 2024 was $0.5 million and $0.5 million, respectively, of which $23 thousand and $22 thousand, respectively, were related to leases with a term of less than 12 months.
As of December 31, 2025, the weighted-average remaining lease term was 1.4 years and the weighted-average discount rate was 8%. As of December 31, 2024, the weighted-average remaining lease term was 2.4 years and the weighted-average discount rate was 8% for the year ended December 31, 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.