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LEASES

9 Months Ended

Sep. 30, 2025

12. LEASES

Lessee:

The Company has operating leases for its corporate headquarters, Treatment Centers, a training facility, and office equipment. The corporate headquarters is located in Malvern, Pennsylvania, where the Company leases an approximately 42,000 square foot facility comprising office and warehouse space.

During the nine month period ended September 30, 2025, the Company executed a lease modification for this facility, extending the lease term through June 2033 for only 32,000 square feet of the premises.

The Company leases an approximately 9,600 square foot facility in Charlotte, North Carolina as a training facility for its NeuroStar Advanced Therapy Systems. The lease ends in September 2027. The Company has an option to extend the lease on its training facility for an additional one-year term; however, the Company has determined it is not reasonably certain to exercise the option at this time after assessing contract, asset, entity and market conditions present upon lease commencement.

Following the acquisition of Greenbrook, the Company has lease agreements related to its Treatment Centers and corporate offices. These lease agreements range from month-to-month to seven years in length.

Operating lease rent expense was $2.2 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively and $6.6 million and $0.6 million for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the weighted average remaining lease term of operating leases was 5.5 years, and the weighted average discount rate was 12.4%.

The following table presents the supplemental cash flow information as a lessee related to leases (in thousands):


	Nine Months Ended
	September 30, 2025		September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,024	$	827

The following table sets forth by year the required future payments of operating lease liabilities (in thousands):



	Amount
Remainder of 2025	$	1,988
2026		7,750
2027		6,409
2028		4,778
2029		4,076
Thereafter		9,947
Total lease payments		34,948
Less imputed interest		(9,870)
Present value of operating lease liabilities	$	25,078

Lessor sales-type leases:

Certain customers have purchased NeuroStar Advanced Therapy Systems on a rent-to-own basis. The lease term is two or four years with a customer option to purchase the NeuroStar Advanced Therapy System at the

end of the lease or automatic transfer of ownership of the NeuroStar Advanced Therapy System at the end of the lease.

The following table sets forth a maturity analysis of the undiscounted lease receivables related to sales-type leases (in thousands):


	September 30, 2025
Remainder of 2025	$	49
2026		173
2027		47
Total sales-type lease receivables	$	269

As of September 30, 2025 and December 31, 2024 the carrying amount of the lease receivables was $0.3 million. The Company does not have any unguaranteed residual assets.

Lessor operating leases:

NeuroStar Advanced Therapy Systems sold for which collection is not probable are accounted for as operating leases. For the three months ended September 30, 2025 and 2024, the Company recognized operating lease income of $0.06 million and $0.04 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company recognized operating lease income of $0.2 million and $0.1 million, respectively.

The Company maintained rental equipment, net, of $0.1 million and $0.3 million as of September 30, 2025 and December 31, 2024, respectively, which are included in property and equipment, net on the consolidated balance sheets. Rental equipment depreciation expense was $0.01 million and $0.02 million for the three months ended September 30, 2025 and 2024, respectively and $0.05 million and $0.07 million for the nine months ended September 30, 2025 and 2024, respectively.