Note 13 - Leases

9 Months Ended

Sep. 30, 2026

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

13. Leases

The Company leases office space and equipment. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease costs were $0.2 million and $0.4 million for the three months ended  September 30, 2026 and 2025, respectively. Operating lease costs were $1.0 million and $1.2 million for each of the nine months ended  September 30, 2026 and 2025, respectively.  Cash payments for lease liabilities were $0.2 million and $0.4 million for the three months ended  September 30, 2026 and 2025, respectively.  Cash payments for lease liabilities were $0.9 million and $1.0 million for the nine months ended   September 30, 2026 and 2025, respectively.

There were noncash right-of-use asset transactions for the nine months ended September 30, 2026. The Company executed lease renewals which were accounted for as modifications and recognized noncash increases for the right-of-use assets obtained in exchange for new operating lease liabilities of approximately $1.8 million during the nine months ended September 30, 2026. 

The maturity of operating lease liabilities is presented in the following table (unaudited, in thousands):

	As of September 30, 2026
2026	$	209
2027		834
2028		532
2029		483
2030 and thereafter		707
Total lease payments		2,765
Less imputed interest		479
Present value of lease liabilities	$	2,286

Additional information relating to the Company’s operating leases follows (unaudited):

	As of September 30, 2026			As of December 31, 2025
Weighted average remaining lease term (years)		4.0			1.4
Weighted average discount rate		9.9	%		8.2	%