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Leased Assets

12 Months Ended

Dec. 31, 2024

7. Leased Assets

The Company leases certain of its real estate and equipment. The Company has evaluated all its leases and determined that all are operating leases under the definitions of the guidance of ASU 2016-02. The Company’s lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.

The Company uses the effective interest method to record right-of-use assets equal to the present value of the contractual liability for future lease payments. The table below presents the right-of-use assets and related lease liabilities recognized on the condensed consolidated balance sheet as of December 31, 2024:

	Balance Sheet Line Item	December 31, 2024		December 31, 2023

Right-of-use assets	Other assets	$	2,345	$	2,781

Operating lease liabilities

Current portion	Trade accounts payable and accrued expenses	$	598	$	611

Noncurrent portion	Lease liabilities		1,747		2,170

Total operating lease liabilities		$	2,345	$	2,781

The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight line basis over the life of the lease.

The Company’s leases generally do not provide an implicit interest rate, and therefore the Company calculates an incremental borrowing rate to determine the present value of its operating lease liabilities.

The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:

	Year Ended
	December 31, 2024		December 31, 2023

Cash paid for amounts included in the measurement of lease liabilities	$	796	$	796

Cash amounts paid for short-term leases	$	449	$	565

Right-of-use assets obtained in exchange for lease liabilities	$	—	$	—

Weighted average remaining lease term (years)		7.7		7.9

Weighted average discount rate		8.0%		5.0%

The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the condensed consolidated balance sheet as of December 31, 2024:

2025	$	765
2026		771
2027		295
2028		160
2029		160
Thereafter		800
Total undiscounted future minimum lease payments		2,951
Less: Difference between undiscounted lease payments & the present value of future lease payments		(606	)
Total operating lease liabilities	$	2,345

Certain of the Company’s lease agreements contain renewal options at the Company’s discretion. The Company does not recognize right-of-use assets or lease liabilities for leases of one year or less or for renewal periods unless it is reasonably certain that the Company will exercise the renewal option at the inception of the lease or when a triggering event occurs. The Company’s weighted average remaining lease term for operating leases as of December 31, 2024 is 7.7 years.