Right-of-Use Assets and Lease Liabilities
The Company’s operating leases primarily relate to office space. The Company’s related ROU assets and lease liabilities are comprised of the following as of each period end:
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| As of December 31, |
| (Amounts in thousands) | 2025 | | 2024 |
| Operating leases: | | | |
| ROU assets | $ | 4,208 | | | $ | 4,750 | |
| Lease liability, current | 945 | | | 892 | |
| Lease liability, non-current | 4,181 | | | 4,848 | |
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Other information related to leases is presented below:
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| Years Ended December 31, |
| (Amounts in thousands) | 2025 | | 2024 |
| Other information: | | | |
| Operating lease cost | $ | 1,235 | | | $ | 1,606 | |
| Variable lease cost | 757 | | | 679 | |
| Sublease income | 161 | | | 525 | |
| Operating cash outflows from operating ROU assets | 1,992 | | | 2,285 | |
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| As of December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term – operating leases (in months) | 51.2 | | 61.5 |
| Weighted-average discount rate – operating leases | 7.2 | % | | 7.2 | % |
As of December 31, 2025, the annual minimum lease payments of the Company’s operating lease liabilities were as follows:
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| | As of December 31, |
| (Amounts in thousands) | | 2025 |
| 2026 | | $ | 1,205 | |
| 2027 | | 1,257 | |
| 2028 | | 1,396 | |
| 2029 | | 1,195 | |
| 2030 | | 593 | |
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| Total future minimum lease payments, undiscounted | | 5,646 | |
| Less: Imputed interest | | (520) | |
| Present value of future minimum lease payments | | $ | 5,126 | |
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.