Note 15. Leases

Operating Leases

As of December 31, 2025, the Company leases office space in Dallas, TX. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these short-term leases on a straight-line basis.

The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or material restrictive covenants. Leases consisted of the following (in thousands):

 

Leases

 

Classification

 

December 31, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

 Right of use asset

 

$

 

 

$

137

 

Total leased assets

 

 

 

$

 

 

$

137

 

Liabilities

 

 

 

 

 

 

 

 

Current - Operating

 

 Operating lease liability - current

 

$

 

 

$

155

 

Total leased liabilities

 

 

 

$

 

 

$

155

 

 

Lease Cost

 

Classification

 

For the
Year Ended
December 31,
2025

 

 

For the
Year Ended
December 31,
2024

 

Operating lease cost

 

 SG&A and R&D Expenses

 

$

139

 

 

$

850

 

Short term lease cost

 

 SG&A and R&D Expenses

 

 

4

 

 

 

13

 

Sublease income (1)

 

 SG&A and R&D Expenses

 

 

(143

)

 

 

(547

)

Net lease cost

 

 

 

$

 

 

$

316

 

 

(1) Sublease income is recorded as a reduction to lease expense.

 

Lease Term and Discount Rate

 

December 31, 2025

 

 

December 31, 2024

 

Weighted-average remaining
   lease term (years)

 

 

 

 

 

0.6

 

Weighted-average discount rate

 

 

0.0

%

 

 

6.5

%

 

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 25, 2025
2023Mar 28, 2024
2022Mar 30, 2023
2021Mar 31, 2022

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.