LEASES

12 Months Ended

Dec. 31, 2025

Our significant lease arrangements relate to our office spaces. These arrangements are for leases of assets such as corporate office space and office equipment. We lease office space and office equipment under operating leases expiring at various dates between 2028 and 2039. In connection with the Transaction, we recognized lease liabilities of $32.9 million, measured using our incremental borrowing rate, and corresponding right-of-use assets of $30.7 million related to acquired office space leases.

Certain office lease agreements include options to extend the lease for up to ten years. Office lease extension periods are not included in the lease terms used to calculate the lease liabilities and right-of-use assets. The Company's leases do not generally include options to terminate the lease prior to the end of the lease term. Variable lease payments, such as common area maintenance charges, property taxes, and other operating expenses, are recognized as lease expense in the

period in which the obligation is incurred. The following amounts were recorded in the consolidated balance sheets as of December 31, 2025 and 2024 (amounts in thousands):


	Classification	December 31, 2025		December 31, 2024
Operating Leases
Right-of-use assets - non-current	Other assets	33,757		4,318

Lease liabilities - current	Other current liabilities	$	4,246	$	965
Lease liabilities - non-current	Other long-term liabilities	32,964		4,003
Total operating lease liabilities		$	37,210	$	4,968

Total operating lease expense, included in general and administrative expenses, was $2.0 million in 2025, $1.0 million in 2024 and $1.0 million in 2023.

Maturities of operating lease liabilities at December 31, 2025 were as follows (amounts in thousands):


Fiscal Years:	Operating Leases
2026	$	4,488
2027	4,739
2028	4,557
2029	4,538
2030	4,224
Thereafter	25,306
Total lease payments	$	47,852
Less imputed interest	(10,642)
Total	$	37,210

Other information pertaining to lease liabilities consists of the following:


	December 31, 2025		December 31, 2024
Operating Lease Term and Discount Rate
Weighted average remaining lease term in years	10.8		5.1
Weighted average discount rate	4.5	%	2.7	%

We did not have any finance leases as of December 31, 2025.

In connection with the Transaction, we assumed operating subleases associated with certain acquired leases related to office space. Income from operating subleases is recognized over the term of the sublease and presented as other income. Variable sublease income, including payments for common area maintenance charges, property taxes, and other operating expenses, are recognized as variable sublease income in the period in which they are earned. The following table presents

the undiscounted proceeds we are contractually entitled to receive from operating subleases, not including variable sublease income (amounts in thousands):


Fiscal Years:	Operating Subleases
2026	$	2,224
2027	2,228
2028	2,247
2029	2,254
2030	2,376
Thereafter	18,819
Total	$	30,148