Leases
The Company is a party to various non-cancelable operating lease agreements for certain of its offices. The Company is a party to various non-cancelable finance lease agreements for certain network equipment. The leases have original lease periods expiring between 2026 to 2028. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The Company has elected the short-term lease recognition exemption for all leases that qualify. For leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, the Company does not recognize ROU assets or lease liabilities. Instead, lease payments for short-term leases are recognized as expense on a straight-line basis over the lease term. Short-term lease costs for the years ended December 31, 2025 and 2024 were $0.2 million and $0.2 million, respectively, and are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.
The components of lease costs, lease term and the discount rate were as follows for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Finance leases | | | |
| Amortization of assets under finance leases | $ | — | | | $ | — | |
| Interest | 18 | | | 97 | |
| Total finance lease costs | $ | 18 | | | $ | 97 | |
| | | |
| Operating lease cost | $ | 792 | | | $ | 1,344 | |
| Variable lease cost | $ | 199 | | | $ | 572 | |
| Short-term lease rent expense | $ | 2,921 | | | $ | 2,052 | |
| | | |
| Weighted-average remaining lease term | | | |
| Operating leases | 2.3 | | 5.2 |
| Finance leases | 0.0 | | 0.6 |
| | | | | | | | | | | |
| | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Weighted-average discount rate | | | |
| Operating leases | 10.1 | % | | 11.2 | % |
| Finance leases | — | % | | 10.9 | % |
The following table outlines future minimum lease payments under the Company’s non-cancellable leases as of December 31, 2025:
| | | | | |
| Operating Leases |
| 2026 | $ | 563 | |
| 2027 | 451 | |
| 2028 | 272 | |
| Total undiscounted cash flows | 1,286 | |
| Less: Imputed interest | (156) | |
| Present value of lease liabilities | $ | 1,130 | |
| |
| Lease liabilities, current | $ | 465 | |
| Lease liabilities, non-current | 665 | |
| Present value of lease liabilities | $ | 1,130 | |
As of December 31, 2025, the Company does not have any operating and/or finance leases, which have not yet commenced.
Supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 is as follows:
| | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Payments for operating leases included in cash from operating activities | $ | 202 | | | $ | 462 | |
| Payments for finance leases included in cash from operating activities | $ | 18 | | | $ | 97 | |
| Payments for finance leases included in cash from financing activities | $ | 462 | | | $ | 869 | |
| Assets obtained in exchange for lease obligations: | | | |
| Operating leases | $ | 1,072 | | | $ | — | |
| Finance leases | $ | — | | | $ | — | |
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.