Leases

9 Months Ended

Sep. 30, 2025

12.

Leases

The Company has entered into operating leases primarily for real estate. The Company will determine whether an arrangement is a lease at inception of the agreement. The operating leases have terms of one to eight years, and often include one or more options to renew. These renewal terms can extend the lease term from two to 10 years and are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company considers these options in determining the lease term used in establishing our right-of-use assets and lease obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Because the rate implicit in each operating lease is not readily determinable, the Company uses its incremental borrowing rate to determine present value of the lease payments.

The components of lease costs were as follows for the respective years:


	September 30, 2025			September 30, 2024
Operating lease cost, include in General and Administrative expenses on the Consolidated Statements of Operations	$	1,629		$	1,175
Right-of-use lease asset and Lease liability was as follows:
Right-of-use asset		8,913			5,853
Lease liability		9,975			6,522
Supplemental cash flow information related to our operating leases as follows:
Right-of-use asset		(522	)		688
Lease liability		911			(698	)
Weighted-average lease term and discount rate for our operating lease was as follows:
Weighted-average remaining lease term
Operating lease	4.54 years			5.48 years
Weighted-average discount rate
Operating lease		5.51	%		5.08	%

Future lease payments for the operating lease were as follows as of September 30, 2025:


2025 (remaining)	$	461
2026		2,273
2027		2,467
2028		2,537
2029		2,608
Thereafter		1,028
Total lease payments		11,374
Less: imputed interest		1,399
Present value of lease liability	$	9,975