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LEASES
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Commitments and Contingencies Disclosure COMMITMENTS AND CONTINGENCIES
Lease Commitments

We have entered into office space lease agreements, which qualify as operating leases under ASC 842 (“Leases”). Under such leases, the lessors receive annual minimum (base) rent. The leases have original terms (excluding extension options) ranging from one to ten years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We record base rent expense under the straight-line method over the term of the lease. In the accompanying Condensed Consolidated Statements of Comprehensive Loss, rent expense is included in operating expenses under general and administrative expenses.
We have entered into a software license agreement, which qualifies as a finance lease under ASC 842 (“Leases”). Under this lease, the lessor receives fixed payments over a period of four years, after which we take ownership of the software and source code. The resulting software asset is included in property and equipment, net, in the accompanying Condensed Consolidated Balance Sheets. We record amortization for the related asset over its useful life on a straight-line basis and recognize interest expense under the effective interest method over the term of the lease. In the accompanying Condensed Consolidated Statements of Comprehensive Loss, these expenses are included in general and administrative expenses and interest expense, respectively.

The components of the lease-related expenses are as follows for the periods presented below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease cost:
Rent expense$577 $501 $1,631 $1,454 
Sublease income— — — (4)
Total operating lease cost$577 $501 $1,631 $1,450 
Finance lease cost:
Amortization of assets$5 $— $5 $— 
Interest on lease liabilities2 — 2 — 
Total finance lease cost$7 $— $7 $— 

For purposes of calculating the lease assets and lease liabilities, extension options are not included in the lease term unless it is reasonably certain we will exercise the option, or the lessor has the sole ability to exercise the option. The weighted average discount rate of our operating leases is 10% as of September 30, 2025, and December 31, 2024. The weighted average remaining lease term for our operating leases is three years and four years as of September 30, 2025 and December 31, 2024, respectively. The discount rate of our finance lease is 11% as of September 30, 2025. The remaining lease term for our finance lease is four years as of September 30, 2025.

Supplemental cash flow information related to leases are as follows for the periods presented below (in thousands):
Nine Months Ended September 30,
 20252024
Cash paid for amounts included in the measurement of operating lease liabilities:  
Operating cash outflows from operating leases$1,652 $1,560 
Non-cash activities:
Operating lease assets obtained or removed in exchange for new, modified or terminated operating lease liabilities$2,723 $419 
Finance lease assets obtained or removed in exchange for new, modified, or terminated finance lease liabilities$284 $— 

Future minimum commitments over the life of all operating and financing leases, which exclude variable rent payments, are as follows for the period presented below (in thousands):
Operating LeasesFinance Leases
2025 (Remaining)$613 $22 
20262,258 88 
20271,954 88 
20281,787 87 
20291,035 58 
2030208 — 
Thereafter27 — 
Total minimum lease payments7,882 343 
Less: imputed interest(1,366)(63)
Total lease liabilities$6,516 $280 
Contingencies

Although we have been, are, and in the future may be, the defendant or plaintiff in various actions arising in the normal course of business, as of September 30, 2025, we were not currently a party to any material legal proceedings.