Leases
The Company leases office space and other retail space under operating lease agreements with terms that do not exceed five years. In addition, the Company leases online gaming servers and related equipment under finance lease arrangements.
The components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:
Years Ended
December 31,
($ in thousands)202520242023
Operating lease cost$1,208 $1,080 $770 
Variable lease cost389 172 267 
Short-term lease cost405 559 867 
Finance lease cost:
Amortization of finance lease right-of-use asset
2,392 1,829 1,272 
Interest on finance lease liabilities
199 169 85 
Total lease expenses$4,593 $3,809 $3,261 
Additional information relating to leases for the years ended December 31, 2025, 2024 and 2023 was as follows:
Years Ended
December 31,
($ in thousands)202520242023
Operating cash flows from operating leases$893$832$732
Right-of-use assets obtained in exchange for new or modified operating lease liabilities$1,349$1,582$210
Right-of-use assets obtained in exchange for new or modified finance lease liabilities
$3,482$1,986$2,423
Weighted-average remaining lease term (in years) – operating leases2.83.02.5
Weighted-average remaining lease term (in years) – finance leases2.42.73.4
Weighted-average discount rate – operating leases8.6 %9.2 %6.7 %
Weighted-average discount rate – finance leases5.5 %5.3 %7.7 %
The Company calculated the weighted-average discount rate using the interest rates implicit in the lease contract and if not determinable, incremental borrowing rates, which equal the rates of interest that it would pay to borrow funds on a fully collateralized basis over a similar term.
The Company records lease activity within the following financial statement line items:
AccountFinancial Statement Line Item
Operating lease right-of-use asset
Operating lease assets
Finance lease right-of-use asset, netProperty and equipment, net
Operating lease liabilities
Other current liabilities and Other non-current liabilities
Finance lease liabilities
Other current liabilities and Other non-current liabilities
Operating lease expense
General and administrative
Finance lease amortization expenseDepreciation and amortization
Finance lease interest expense
Interest income, net
Maturity of operating lease liabilities as of December 31, 2025 is as follows:
($ in thousands)
Year ending December 31, 2026$1,190 
Year ending December 31, 2027986 
Year ending December 31, 2028708 
Year ending December 31, 2029238 
Year ending December 31, 2030— 
Total undiscounted future cash flows3,122 
Less: present value discount(378)
Operating lease liabilities$2,744 
Maturity of finance lease liabilities as of December 31, 2025 is as follows:
($ in thousands)
Year ending December 31, 2026$1,622 
Year ending December 31, 20271,528 
Year ending December 31, 2028522 
Year ending December 31, 2029— 
Year ending December 31, 2030— 
Total undiscounted future cash flows3,672 
Less: present value discount(284)
Finance lease liabilities$3,388 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 28, 2025
2023Mar 7, 2024
2022Mar 2, 2023
2021Mar 7, 2022
2020Mar 25, 2021

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.