8. Leases

 

In June 2021, the Company entered into a facility lease agreement for its company headquarters in Los Gatos, California. This non-cancellable operating lease expires in June 2026. Operating lease costs for the facility lease were $292 and $292 for the years ended December 31, 2025 and 2024, respectively.

 

Supplemental balance sheet information related to leases was as follows:

 

   December 31,   December 31, 
   2025   2024 
Operating lease right-of-use asset $131  $399 
           
Operating lease liability, current $(141) $(287)
Operating lease liability, noncurrent     (141)
Total operating lease liabilities $(141) $(428)

 

Future maturities of operating lease liabilities as of December 31, 2025 were as follows:

 

2026 $144 
Total lease payments  144 
Less: imputed interest  (3)
Present value of operating lease liabilities $141 

 

Other information:

 

Cash paid for operating leases for the year ended December 31, 2025 $310 
Cash paid for operating leases for the year ended December 31, 2024 $301 
Remaining lease term - operating leases (in years)  0.50 
Average discount rate - operating leases  8.0%

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 26, 2025
2023Mar 29, 2024
2022Mar 10, 2023

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.