Leases

3 Months Ended

Mar. 31, 2025

Leases

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–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 March 31, 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 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:

	March 31, 2025		December 31, 2024
	(In thousands)
Office space	$	1,050	$	1,083
Vehicles		216		240
Total right–of–use asset	$	1,266	$	1,323
Office space	$	1,150	$	1,141
Vehicles		203		225
Total lease liability	$	1,353	$	1,366

The Company’s weighted–average remaining lease terms and discount rates as of March 31, 2025 are as follows:

	Operating Leases
Weighted–average lease term (years)		3.8
Weighted–average discount rate		10.2	%

The Company has several operating leases for office spaces and vehicles 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 March 31,
	2025		2024
	(In thousands)
Operating lease cost	$	122	$	39
Short–term lease cost (1)		—		13
Variable lease cost (2)		22		—
Total lease cost	$	144	$	52

(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.

As of March 31, 2025, the Company’s future lease commitments by year consisted of the following:

	(In thousands)
April 1, 2025 through March 31, 2026	$	451
April 1, 2026 through March 31, 2027		377
April 1, 2027 through March 31, 2028		263
April 1, 2028 through March 31, 2029		231
April 1, 2029 through March 31, 2030		227
Thereafter		—
Total lease payments		1,549
Less: imputed interest		(196	)
Total lease liability	$	1,353

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

	Three Months Ended March 31,
	2025		2024
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	110	$	34
Right-of-use assets obtained in exchange for operating liabilities	$	32	$	270