LEASES

9 Months Ended

Sep. 30, 2025

Note 15

LEASES

Operating Leases

The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has operating leases primarily consisting of facilities with remaining lease terms of 1-2 years. The lease term represents the period up to the early termination date unless it is reasonably certain that the Company will not exercise the early termination option. Certain leases include rental payments that are adjusted periodically based on changes in consumer price and other indices.

Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases.

The Company renewed its lease agreement for office space in Hingham, Massachusetts, commencing on July 1, 2024. The lease has an initial term of two years and base rent per year is approximately $25,000.

The Company is also obligated under a short-term lease related to offices in Pennsylvania. This short-term lease is currently leased on a month-to-month basis. A short-term lease is a lease with a term of 12 months or less and does not include the option to purchase the underlying asset that the Company would expect to exercise. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such has not recognized a “right of use” asset or lease liability for this short-term lease.

The Company’s lease agreements generally do not provide an implicit borrowing rate; therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments.

Supplemental cash flow information and non-cash activity related to leases are as follows:


	For the Nine Months Ended September 30,
		2025		2024
Cash used in operating leases	$	18,459	$	17,115
ROU assets obtained in exchange for new lease obligations	$	—	$	46,876

ROU lease assets and lease liabilities for the Company’s operating leases were recorded in the condensed consolidated balance sheet as follows:


		September 30, 2025			December 31, 2024
Right of use assets, net	$	18,097		$	35,560

Short-term operating lease liabilities	$	18,097		$	23,423
Long-term operating lease liabilities		—			12,137
Total lease liabilities	$	18,097		$	35,560
Weighted average remaining lease term (in years)		0.75			1.75
Weighted average discount rate		4.8	%		4.8	%

Long-term operating lease liabilities are included in other long-term liabilities on the Company’s condensed consolidated balance sheets.

The components of lease expense were as follows for each of the periods presented, which are included in general and administrative expenses in the condensed consolidated statements of operations:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2025		2024		2025		2024
Operating lease expense	$	6,153	$	6,153	$	18,459	$	17,115
Short-term lease expense		5,990		8,148		17,789		23,146
Total operating lease costs	$	12,143	$	14,301	$	36,248	$	40,261

Future lease payments included in the measurement of lease liabilities on the condensed consolidated balance sheet as of September 30, 2025, were as follows:


		September 30, 2025
2025 (remaining)		6,153
2026		12,306
Total future minimum lease payments		18,459
Less imputed interest		(362	)
Total	$	18,097