Operating Lease

3 Months Ended

Mar. 31, 2025

On July 31, 2024, the Company entered into a 10-year extension of its lease through March 31, 2035, for office space of approximately 37,829 square feet at a single location.

As of March 31, 2025, the carrying value of the right-of-use asset, which is included in property and equipment on the consolidated balance sheets, was approximately $3.4 million. As of March 31, 2025, the carrying value of the lease liability was approximately $6.3 million.

Lease liability is measured at the present value of the remaining lease payments, discounted using the discount rate determined at the lease commencement date.

As of March 31, 2025, the weighted average discount rate applied to the Company’s lease liability was 6.5%, reflective of the Company’s incremental borrowing rate. The determination of the incremental borrowing rate involves judgement, including assumptions about the Company’s credit risk, economic conditions, and the lease-specific circumstances such as lease term and asset class. Changes in these assumptions could have a material impact on the measurement of the Company’s lease liability.

The following table summarizes the total lease and operating expenses for the three-month periods ended March 31, 2025 and 2024:


	March 31, 2025		March 31, 2024
Three Months Ended	$	223,455	$	201,595

The following table provides a maturity analysis of the Company’s operating lease liability, based on undiscounted cash flows, as of March 31, 2025:


	March 31, 2025
2025	$	567,435
2026	773,603
2027	796,868
2028	820,889
2029	845,384
2030 and Thereafter	4,870,011
Total undiscounted operating lease payments	8,674,190
Less: Imputed interest	(2,392,875)
Present value of operating lease liability	$	6,281,315