Leases

9 Months Ended

Sep. 30, 2025

Note 11 – Leases

The Company determines if a contract contains a lease at its inception or as a result of an acquisition and makes certain assumptions and judgments when determining its right–of–use assets and lease liabilities. When determining whether a contract contains a lease, the Company considers whether there is an identified asset that is physically distinct, whether the supplier has substantive substitution rights, whether the Company has the right to obtain substantially all of the economic benefits from the use of the asset, and whether it has the right to control the asset. Certain lease agreements could include options to renew the lease, terminate the lease early, or purchase the underlying asset(s). The Company determines the lease term at the lease commencement date as the non–cancelable period of the lease, including any options to extend or terminate the lease when such an option is reasonably certain to be exercised. The Company recognizes variable lease payments in the period they are incurred. Certain leases contain both lease and non–lease components, which the Company has chosen to account for separately. As of September 30, 2025 and December 31, 2024, all of the Company’s leases were operating leases.

The Company capitalizes its operating right–of–use assets and corresponding lease liabilities separately on its condensed consolidated balance sheets, using the present value of the remaining lease payments over the determined lease term applying the implicit rate of the lease.

The following table presents the components of the Company’s operating leases on its condensed consolidated balance sheets for the periods presented:

	September 30, 2025		December 31, 2024
	(In thousands)
Operating leases:
Office space	$	1,257	$	1,083
Vehicles and equipment		347		240
Total right–of–use asset	$	1,604	$	1,323

Office space	$	1,398	$	1,141
Vehicles and equipment		340		225
Total lease liability	$	1,738	$	1,366

The Company’s weighted–average remaining lease terms and discount rates as of September 30, 2025 are as follows:

	Operating Leases
Weighted–average lease term (years)		2.91
Weighted–average discount rate		10.2	%

The Company has several operating leases for office spaces, vehicles, and equipment used in its daily operations, under non–cancelable operating leases expiring through 2030. The Company recognizes lease expense for these leases on a straight–line basis. The following table presents the components of the Company’s lease costs during the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In thousands)
Operating lease cost	$	288	$	50	$	682	$	141
Short–term lease cost ⁽¹⁾		—		—		—		25
Variable lease cost ⁽²⁾		88		3		206		10
Total lease cost	$	376	$	53	$	888	$	176

⁽¹⁾	One of the Company’s office space operating leases, which expired in September 2024, had an initial lease term of less than 12 months and was considered a short-term lease. The Company does not capitalize short–term leases, instead the costs are expensed as they are incurred.

⁽²⁾	Variable lease costs include operating costs, such as parking costs and property taxes, associated with the Company’s office leases. The Company expenses variable lease costs as they are incurred.

The Company’s supplemental cash flow disclosures related to operating leases are presented below for the periods indicated:

	Nine Months Ended September 30,
	2025		2024
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	578	$	131
Right-of-use assets obtained in exchange for operating liabilities	$	812	$	1,020