5. Leases

 

The Company has an operating lease for its office space in Pennsylvania. As of December 31, 2025 and 2024, the following amounts were recorded in the Consolidated Balance Sheets relating to the Company’s operating lease.

 

 

   2025   2024 
   December 31, 
   2025   2024 
Right-of-Use Assets          
Operating lease assets  $455   $530 
Lease Liabilities          
Operating lease liabilities - Current  $80   $71 
Operating lease liabilities - Non-current  $422   $502 

 

The following table summarizes the contractual maturities of operating lease liabilities as of December 31, 2025:

 

      
Year ending December 31,    
2026  $108 
2027   112 
2028   117 
2029   121 
2030   126 
Total lease payments   584 
Less amounts representing interest   (82)
Present value of lease payments   502 
Less: current portion   (80)
Non-current lease liabilities  $422 

 

The following table illustrates information for the Company’s operating lease during the year ended December 31, 2025 and 2024:

 

   2025   2024 
   December 31, 
   2025   2024 
Total operating lease cost  $71   $63 
Short-term lease cost  $    $14 
Cash paid for amounts included in the measurement of the operating lease liability  $104   $100 
Weighted average remaining lease term (years)   5.0    6.0 
Weighted average discount rate   6.00%   6.00%

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Mar 28, 2025

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.