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Leases

9 Months Ended

12 Months Ended

Sep. 30, 2025

Dec. 31, 2024

Note 11. Leases

The Company’s lease obligations primarily consist of operating leases for its headquarters complex, and domestic and international office facilities, with lease periods expiring between fiscal years 2026 and 2029, some of which include options to extend up to 12 months. The Company does not have any leases that include residual value guarantees.

Payments under the lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include variable payments for maintenance services, utilities, and other expenses.

The components of the net lease costs reflected in the Company’s condensed consolidated statements of operations were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2025		2024		2025		2024
Operating	$	194	$	205	$	600	$	549
Short-term		5		6		15		26

Total lease costs	$	199	$	211	$	615	$	575

As of September 30, 2025, the Company’s operating leases had a weighted average remaining lease term of 2.5 years and a weighted average discount rate related to the Company’s right-of-use (“ROU”) assets and lease liabilities of 10.0%. As of December 31, 2024, the Company’s operating leases had a weighted average remaining lease term of 3.2 years and a weighted average discount rate related to the Company’s right-of-use assets and lease liabilities of 9.9%.

Supplemental information related to operating leases was as follows:


	Nine Months Ended September 30,
(Amounts in thousands)	2025		2024
Supplementary cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	644	$	577
Right-of-use assets obtained in exchange for lease liabilities		431		—

Future minimum lease payments under the Company’s non-cancelable operating leases are as follows:


(Amounts in thousands)	As of September 30, 2025
2025	$	205
2026		758
2027		516
2028		349
2029		15

Total future lease payments		1,843
Less: Imputed interest		(217	)

Present value of net future minimum lease payments		1,626
Less: Operating lease liabilities, current		(678	)

Operating lease liabilities	$	948

Note 9. Leases

The Company’s lease obligations primarily consist of operating leases for its headquarters complex and domestic and international office facilities, with lease periods expiring between fiscal years 2026 and 2029, some of which include options to extend up to 12 months. The Company does not have any leases that include residual value guarantees.

During the year ended December 31, 2023, the Company executed three lease renewals for a period of five years and extinguished one lease prior to its scheduled termination date. The loss recognized on lease termination was immaterial.

The components of the net lease cost reflected in the Company’s consolidated statements of operations were as follows for the years ended December 31, 2024 and 2023 (in thousands):


	2024		2023
Operating lease costs	$	817	$	989
Short-term lease costs		26		46

	$	843	$	1,035

As of

December 31, 2024, the Company’s operating leases had a weighted average remaining lease term of

3.2

years and a weighted average discount rate related to the Company’s ROU assets and lease liabilities of

9.9

%. As of December 31, 2023, the Company’s operating leases had a weighted average remaining lease term of

4.0

years and a weighted average discount rate related to the Company’s ROU assets and lease liabilities of

9.8

Supplemental information related to operating leases was as follows for the years ended December 31, 2024 and 2023 (in thousands):


	2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	785	$	1,008
Right-of-use assets obtained in exchange for lease liabilities	$	—	$	1,673
Right-of-use assets and lease liabilities extinguished upon termination of lease, net gain	$	—	$	108
Short-term variable lease expenses	$	52	$	202

As of December 31, 2024, future minimum lease payments under the Company’s non-cancelable operating leases are as follows (in thousands):


	Operating lease obligations
2025	$	721
2026		534
2027		421
2028		357
2029		13

Total		2,046
Less: imputed interest		(302	)

Present value of net future minimum lease payments		1,744
Less: short-term operating lease liabilities		(578	)

Long-term operating lease liabilities	$	1,166