We have entered into office space lease agreements, which qualify as operating leases under ASU No. 2016-02, “Leases (Topic 842)”. Under such leases, we have commitments to pay annual minimum (base) rent. The leases have original terms (excluding extension options) ranging from one to ten years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We record base rent expense under the straight-line method over the term of the lease. In the accompanying Condensed Consolidated Statements of Comprehensive Income and Loss, rent expense is included in operating expenses under general and administrative expenses.

We have entered into a software license agreement, which qualifies as a finance lease under ASC 842 (“Leases”). Under this lease, the lessor receives fixed payments over a period of four years, after which we take ownership of the software and source code. The resulting software asset is included in property and equipment, net, in the accompanying Condensed Consolidated Balance Sheets. We record amortization for the related asset over its useful life on a straight-line basis and recognize interest expense under the effective interest method over the term of the lease. In the accompanying Condensed Consolidated Statements of Comprehensive Income and Loss, these expenses are included in general and administrative expenses and interest expense, respectively.


	Three Months Ended March 31,
	2026		2025
Operating lease cost:
Rent expense	$	647	$	534
Total operating lease cost	$	647	$	534

Finance lease cost:
Amortization of assets	$	14	$	—
Interest on lease liabilities	7		—
Total finance lease cost	$	21	$	—

For purposes of calculating the lease assets and lease liabilities, extension options are not included in the lease term unless it is reasonably certain we will exercise the option, or the lessor has the sole ability to exercise the option. The weighted average discount rate of our operating leases is 10% as of March 31, 2026 and December 31, 2025. The weighted average remaining lease term for our operating leases is three years as of March 31, 2026 and December 31, 2025. The discount rate of our finance lease is 11% as of March 31, 2026 and December 31, 2025. The remaining lease term for our finance lease is three and four years as of March 31, 2026 and December 31, 2025, respectively.


	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash outflows from operating leases	$	651	$	564
Non-cash operating activities:
Operating lease assets obtained or removed in exchange for new, modified or terminated operating lease liabilities	$	70	$	736

Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows for the period presented below (in thousands):


	Operating Leases		Finance Leases
2026 (Remaining)	$	1,925	$	66
2027	2,387		87
2028	2,110		88
2029	1,035		58
2030	208		—
2031	27		—
Thereafter	—		—
Total minimum lease payments	7,692		299
Less: imputed interest	(1,188)		(49)
Total lease liabilities	$	6,504	$	250

Although we have been, are, and in the future may be, the defendant or plaintiff in various actions arising in the normal course of business, as of March 31, 2026, we were not currently a party to any material legal proceedings.