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Operating Leases

9 Months Ended

Sep. 30, 2025

5.Operating Leases

The Company has various lease agreements for its offices and service delivery centers and has determined that the risks and benefits related to these leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. Lease agreements with a term of less than one year are treated as short-term leases and are accounted for separately as shown in the table below.

Most of these lease agreements are renewable at the mutual consent of the parties to the contract. These lease agreements are for terms ranging from two to eleven years and, in most cases, provide for rent escalations ranging from 1.75% to 15%.

The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands):


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Rent expense for long-term operating leases	$	337	$	314	$	966	$	943
Rent expense for short-term leases		46		51		136		142
Total rent expense	$	383	$	365	$	1,102	$	1,085

The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of September 30, 2025 (in thousands):


Year	Amount
Remaining for 2025	$	368
2026		1,562
2027		1,560
2028		1,159
2029		722
2030 and thereafter		194
Total lease payments		5,565
Less: Interest		(888)
Net present value of lease liabilities	$	4,677

Current portion	$	1,122
Long-term portion		3,555
Total	$	4,677

The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of September 30, 2025 were as follows:


Weighted-average lease term remaining	41 months
Weighted-average discount rate	9.16	%