Leases

6 Months Ended

Jun. 30, 2025

5. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 4, we leased the property pursuant to a master lease for an initial term extending through September 30, 2030, with two five-year extensions. The extension options are not recognized as part of the right-of-use asset and lease liability. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the initial lease term. At June 30, 2025, the weighted average remaining lease term was 5.25 years and the weighted average discount rate was 3.75%.

Because the rate implicit in the lease is not readily determinable, we used our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:


	June 30,		December 31,
(in thousands)	2025		2024
	(unaudited)
Operating right-of-use asset, net	$	5,026	$	5,454

Operating lease liability, current portion	$	869	$	839
Operating lease liability, net of current portion		4,427		4,869
	$	5,296	$	5,708

Operating lease expense is recognized on a straight-line basis over the lease term. Our operating lease expense was $268 and $265 for the three months ended June 30, 2025 and 2024, respectively, and $533 and $530 for the six months ended June 30, 2025 and 2024, respectively. At June 30, 2025, and for the subsequent years ending December 31, future maturity is as follows:


(in thousands)
2025 (remaining)	$	521
2026		1,064
2027		1,093
2028		1,123
2029		1,154
Thereafter		883
Future lease payments, gross		5,838
Less: Imputed interest		(542	)
Total operating lease liability	$	5,296