LEASES
Lessee
We have operating and finance leases for corporate offices, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years. Some of the leases include options to extend the leases and some include options to terminate the lease within 1 year. Operating leases and finance leases are included separately in the Consolidated Balance Sheets.
The components of lease expense are as follows: | | | | | | | | | | | | | | | | | | |
| | | | Year Ended December 31, |
| | | | | | 2025 | | 2024 |
| Operating lease cost | | | | | | $ | 1,531 | | | $ | 1,303 | |
| | | | | | | | |
| Finance lease cost: | | | | | | | | |
| Amortization of finance lease assets | | | | | | $ | 19 | | | $ | — | |
| | | | | | | | |
| Total finance lease cost | | | | | | $ | 19 | | | $ | — | |
Supplemental cash flow information related to leases was as follows: | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | |
| Operating cash flows from operating leases | | $ | 1,144 | | | $ | 809 | |
| | | | |
| Financing cash flows from finance leases | | $ | 8 | | | N/A |
| | | | |
| Right-of-use assets obtained in exchange for lease obligations | | | | |
| Operating leases | | $ | 3,112 | | | $ | 416 | |
Supplemental balance sheet information related to leases was as follows: | | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term (in years) | | | | |
| Operating leases | | 13.8 | | 2.5 |
| Finance leases | | 0.9 | | N/A |
| | | | |
| Weighted average discount rate | | | | |
| Operating leases | | 12.80 | % | | 8.50 | % |
| Finance leases | | 5.76 | % | | N/A |
We are committed to making future cash payments on non-cancelable operating leases and finance leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and finance leases having initial or remaining lease terms in excess of one year as of December 31, 2025 were as follows:
| | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases |
| | | | |
| 2026 | | $ | 2,041 | | | $ | 16 | |
| 2027 | | 2,058 | | | 2 | |
| 2028 | | 1,797 | | | — | |
| 2029 | | 1,799 | | | — | |
| 2030 and thereafter | | 20,296 | | | — | |
| Total future minimum lease payments | | 27,991 | | | 18 | |
| Less amounts representing interest | | (16,118) | | | (1) | |
| Present value of lease obligations | | $ | 11,873 | | | $ | 17 | |
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.