Note 15 – Operating Leases:

 

As of December 31, 2025, the Company has use of space in three different locations, Hoboken, NJ, Tempe, AZ, and Mclean, VA, under lease or membership agreements, which expire at various dates through July 31, 2030. The Company’s leases do not provide an implicit rate, and the rates implicit in our leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease assets and liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company’s leases all contain options to extend or renew the lease or membership term.

 

The table below reconciles the undiscounted future minimum lease payments under these operating leases to the total operating lease liabilities recognized on the consolidated balance sheet as of December 31, 2025 (in thousands):

 

Year  Lease Payments
Due
 
2026  $1,001 
2027   1,028 
2028   665 
2029   213 
2030   126 
Total minimum payments   3,033 
Less: imputed interest   (456)
Present value of operating lease liabilities   2,577 
Less: current portion included in accrued expenses   (769)
Long-term operating lease liabilities  $1,808 

Other information related to operating lease liabilities consists of the following:

 

   Year Ended December 31, 
   2025   2024   2023 
Cash paid for operating lease liabilities  $594   $385   $411 
Weighted average remaining lease term in years   3.14    3.30    3.70 
Weighted average discount rate   10.77%   10.00%   10.00%

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 20, 2025
2023Apr 1, 2024
2022Mar 30, 2023

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.