5.
Leases

The Company entered into a lease for office space in New Haven, Connecticut, effective March 1, 2013, and entered into a First Amendment (the “First Amendment”) to such lease on December 5, 2017 and a Second Amendment (the “Second Amendment”) to such lease on November 21, 2022 (collectively, the “Office Space Lease”). The leased space approximated 5,600 square feet and, prior to the Second Amendment, the Office Space Lease had a term of 60 months expiring on February 28, 2023. Under the First Amendment, the Company was required to make monthly payments ranging from approximately $10 to $12 through February 1, 2023 and received two designated months of free rent. As a result of the Company entering into the Second Amendment, the leased space increased to 12,500 square feet effective in March 2023 and the term for the Office Space Lease was extended for an additional 60 months from its prior termination date, until February 28, 2028. The Second Amendment requires monthly payments ranging from approximately $23 to $32 effective in March 2023 through February 2028. The first year of payments are based on 10,500 square feet of occupied space, the second year of payments are based on 11,500 square feet of occupied space and the remaining lease payments are based on 12,500 square feet of occupied space.

In December 2022, the Company entered into a 24-month lease for the financing of the furniture installed in the Company’s new office space. The furniture lease requires monthly payments of approximately $11 starting in March 2023. The Company also entered into an immaterial office equipment lease during 2022 that has a term of 36 months.

The following table presents the Company’s lease-related assets and liabilities as presented on its Consolidated Balance Sheets:

 

 

 

 

December 31,

 

 

 

Classification on the Consolidated Balance Sheet

 

2024

 

 

2023

 

Assets:

 

 

 

 

 

 

 

 

Operating lease assets

 

Operating lease right-of-use assets

 

$

915

 

 

$

1,137

 

Finance lease assets

 

Finance lease right-of-use assets

 

 

157

 

 

 

206

 

Total lease assets

 

 

 

$

1,072

 

 

$

1,343

 

Liabilities:

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Operating lease liabilities

 

Operating lease liabilities, current portion

 

$

254

 

 

$

184

 

Finance lease liabilities

 

Finance lease liabilities, current portion

 

 

31

 

 

 

122

 

Non-current

 

 

 

 

 

 

 

 

Operating lease liabilities

 

Operating lease liabilities, non-current portion

 

 

747

 

 

 

1,001

 

Finance lease liabilities

 

Finance lease liabilities, non-current portion

 

 

 

 

 

31

 

Total lease liabilities

 

 

 

$

1,032

 

 

$

1,338

 

 

The following table presents information related to the Company’s lease expense for the periods shown:

 

 

 

Year Ended
December 31,

 

 

 

2024

 

 

2023

 

Operating lease expense

 

$

341

 

 

$

287

 

Finance lease expense

 

 

48

 

 

 

36

 

Total lease expense

 

$

389

 

 

$

323

 

 

Future minimum lease payments from December 31, 2024 until the expiration of the leases are as follows:

 

 

 

Operating Leases

 

 

Finance Leases

 

2025

 

$

349

 

 

$

32

 

2026

 

 

368

 

 

 

 

2027

 

 

377

 

 

 

 

2028

 

 

95

 

 

 

 

Total minimum lease payments

 

 

1,189

 

 

 

32

 

Less: Amount of lease payments representing interest

 

 

(188

)

 

 

(1

)

Present value of future minimum lease payments

 

$

1,001

 

 

$

31

 

 

The following table presents certain information related to the lease terms and discount rates for the Company’s leases:

 

 

December 31,

 

 

2024

 

2023

Weighted average remaining lease term:

 

 

 

 

Operating leases

 

3.3 years

 

4.3 years

Finance leases

 

0.3 years

 

1.3 years

 

 

 

 

 

Weighted average discount rate:

 

 

 

 

Operating leases

 

11.00%

 

11.00%

Finance leases

 

4.37%

 

4.37%

 

The following table presents supplemental cash flow information related to the Company’s leases for the periods shown:

 

 

Year Ended
December 31,

 

 

 

2024

 

 

2023

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash outflows relating to operating leases

 

$

303

 

 

$

231

 

Finance lease payments

 

$

126

 

 

$

95

 

Supplemental non-cash information:

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

 

 

$

1,289

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

 

 

$

242

 

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.