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Note 12 - Leases

6 Months Ended

Jun. 30, 2025

12. Leases

The Company accounts for leases in accordance with ASC No. 842, “Leases.”

The Company entered into a sublease agreement and lease extension agreement for office space in Beaverton, Oregon in February 2022 to move the Company’s corporate headquarters. The term of the sublease and lease extension runs through September 2030, with remaining rent payments as of June 30, 2025, totaling $7,146 plus operating expenses, payable in monthly installments. The first 26 months of rent payments and operating expenses were abated to cover the remaining lease term on the Company’s former corporate headquarters.

All of the Company’s leases are operating leases. The following table provides additional details of leases presented in the Consolidated Balance Sheets:

	*June 30,*			*December 31,*
	*2025*			*2024*
Lease right of use assets	$	3,458		$	3,659
Lease liabilities, current	$	838		$	781
Lease liabilities, long-term	$	4,779		$	5,213

Weighted-average remaining life (in years)		5.2			5.7
Weighted-average discount rate		9	%		9	%

The current lease liabilities are included in “accounts payable and other accrued liabilities” in the Consolidated Balance Sheets.

The carrying value of the lease right of use assets is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. No impairment charges were recorded for the three and six months ended June 30, 2025 and 2024.

Operating lease expense is included in “operating expenses” in the Consolidated Statements of Operations and Comprehensive Loss and in “cash flows from operating activities” in the Consolidated Statements of Cash Flows. The operating leases include variable lease payments, which are included in operating lease expense. Additional details of the Company’s operating leases are presented in the following table:

	*Three Months Ended June 30,*				*Six Months Ended June 30,*
	*2025*		*2024*		*2025*		*2024*
Operating lease expense	$	373	$	318	$	742	$	747
Cash paid for operating leases	$	466	$	496	$	918	$	764

The table below reconciles the aggregate cash payment obligations for the next five years and total of the remaining years for the operating lease liability recorded in the Consolidated Balance Sheets as of June 30, 2025:

	*Cash*
	*Payment*
As of June 30, 2025	*Obligations*
Remaining in 2025	$	663
2026		1,356
2027		1,397
2028		1,296
2029		1,389
Thereafter		1,066
Total lease payments		7,167
Imputed interest		(1,550	)
Total minimum lease payments	$	5,617