Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

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–cancellable 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 December 31, 2024 and 2023, all of the Company’s leases are operating leases.

The Company capitalizes its operating right–of–use assets and corresponding lease liabilities separately on its 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 consolidated balance sheets for the periods presented:

	December 31, 2024		December 31, 2023
	(In thousands)
Office space	$	1,083	$	—
Vehicles		240		155
Total right–of–use asset	$	1,323	$	155
Office space	$	1,141	$	—
Vehicles		225		136
Total lease liability	$	1,366	$	136

The Company’s weighted–average remaining lease terms and discount rates as of December 31, 2024 are as follows:

	Operating Leases
Weighted–average lease term (years)		4.0
Weighted–average discount rate		10.2	%

The Company has several operating leases for office spaces and vehicles used in its daily operations, under non–cancellable 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:

	Year Ended December 31,
	2024		2023
	(In thousands)
Operating lease cost	$	231	$	3
Short–term lease cost (1)		25		60
Variable lease cost (2)		14		—
Total lease cost	$	270	$	63

(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 and property taxes, associated with the Company’s office leases. The Company expenses variable lease costs as they are incurred.

As of December 31, 2024, the Company’s future lease commitments by year consisted of the following:

	(In thousands)
January 1, 2025 through December 31, 2025	$	396
January 1, 2026 through December 31, 2026		488
January 1, 2027 through December 31, 2027		306
January 1, 2028 through December 31, 2028		221
January 1, 2029 through December 31, 2029		226
Thereafter		57
Total lease payments		1,694
Less: imputed interest		(328	)
Total lease liability	$	1,366

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

	Year Ended December 31,
	2024		2023
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	220	$	—
Right–of–use assets obtained in exchange for operating liabilities	$	1,378	$	—