Leases

6 Months Ended

Jun. 30, 2025

9. Leases

The Company leases its corporate headquarters of 21,020 rentable square feet in accordance with a non-cancellable operating lease agreement as amended and effective in January 2017, and the Company entered into a further amendment on September 20, 2023 to exercise the extension option for an additional 60 months through June 30, 2029, with an option to further extend for an additional 60 months. The Company also leases an additional office space of 6,003 rentable square feet for its Seattle office in accordance with a non-cancellable operating lease agreement entered into in April 2017, which expired in March 2025. The extension options of such agreements were not included in the determination of the lease terms.

On December 20, 2024, the Company entered into a non-cancellable 80-month operating lease agreement for its new Seattle office space of 6,709 rentable square feet (the "New Seattle Lease Agreement"), with the lease commencement date on May 1, 2025 (the "Commencement Date").

For the three and six months ended June 30, 2025 and 2024, a summary of the Company’s lease information is shown below:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
Lease cost:
Operating lease costs	$	166	$	195	$	360	$	389
Other information:
Cash paid for operating leases	$	148	$	196	$	349	$	390
Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	1,153	$	-	$	1,153	$	-

(1)

The New Seattle Lease Agreement resulted in the recognition of $1,153 in right-of-use assets obtained in exchange for operating lease liabilities as of May 1, 2025. The Company applied a 6.0% discount rate, its estimated incremental borrowing rate for similar secured assets, to determine the present value of the lease payments, as the implicit rate in the lease is not readily determinable. The discount rate was based on information available as of the Commencement Date.

As of June 30, 2025 and December 31, 2024, the weighted-average remaining term of the Company's operating leases was 5.0 years and 4.3 years, respectively, and the weighted-average discount rate used to measure the operating lease liabilities was 8.36% and 9.94%, respectively.

As of June 30, 2025, scheduled future maturities and present value of the operating lease liabilities are as follows:


(In thousands)
Year	June 30, 2025
Remainder of 2025		256
2026		519
2027		737
2028		859
2029		596
2030 and thereafter		663
Total maturities	$	3,630
Present value included in condensed consolidated balance sheet:
Current portion of operating lease liabilities	$	411
Noncurrent operating lease liabilities		2,520
Total operating lease liabilities	$	2,931
Difference between the maturities and related present value of operating lease liabilities	$	699