Leases

12 Months Ended

Dec. 31, 2024

Leases

Leases

Note 4.  Leases

The Company is obligated under non-cancelable lease agreements for the rental of office space and various other lease agreements for the leasing of office equipment. These operating leases expire at various dates through 2030. In addition to the minimum base rent, the office space lease agreements provide that the Company shall pay its pro-rata share of real estate taxes and operating costs as defined in the lease agreements. The Company also leases certain corporate office facilities from an affiliate.

During 2024, $0.04 million of lease payments were classified as amortization expense, and included within cash used in financing activities on the Company’s statement of cash flows. At December 31, 2024, the weighted-average remaining lease term was 4.3 years for operating leases and 3.5 years for finance type leases. At December 31, 2024, the weighted average discount rate was 6.3% for operating leases and 8.0% for finance type leases.

The following table presents additional information regarding the Company’s financing and operating leases for the years ended December 31, 2024 and 2023 (in thousands): 

	Year ended December 31, 2024		Year ended December 31, 2023
Finance lease expense
Amortization of ROU assets	$	39	$	56
Interest on lease liabilities		11		7
Operating lease expense		919		916
Short term lease expense		262		221
Cash paid for amounts included in the measurement of lease liabilities for finance leases
Financing cash flows		43		63
Cash paid for amounts included in the measurement of lease liabilities for operating leases
Operating cash flows		963		681
ROU assets obtained in exchange for lease liabilities
Finance leases		–		123
Operating leases		–		579

As of December 31, 2024, future maturities of lease liabilities were as follows (in thousands): 

	Operating			Finance
2025	$	922		$	43
2026		907			42
2027		575			30
2028		488			25
2029		447			–
Thereafter		186			–
Total		3,525			140
Less: Present value discount		(460	)		(19	)
Lease liability	$	3,065		$	123

The following table summarizes future minimum payments under the current lease agreements: 

Years Ending December 31	Amount (in thousands)
2025	$	965
2026		949
2027		605
2028		513
2029		447
Thereafter		186
Total	$	3,665

Rent expense totaled approximately $1.1 million for both years ended December 31, 2024 and 2023.