Leases

3 Months Ended

Mar. 31, 2026

5. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 4, we leased the property pursuant to a master lease which was amended effective December 8, 2025 (together, the “Lease Amendment”). The Lease Amendment, among other things, extended the term through September 30, 2035, with two five-year extensions. The extension options are not recognized as part of the right-of-use asset and lease liability. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the lease term. At March 31, 2026, the weighted average remaining lease term was 9.5 years and the weighted average discount rate was 5.090%.

Because the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:


	As of March 31,		As of December 31,
(in thousands)	2026		2025
Operating right-of-use asset, net	$	8,659	$	8,836

Operating lease liability, current portion	$	629	$	614
Operating lease liability, net of current portion		8,338		8,501
	$	8,967	$	9,115


	For the Three Months Ended March 31,	For the Three Months Ended March 31,
(in thousands)	2026	2025
Cash paid for operating lease liabilities	264	$	257

Operating lease expense is recognized on a straight-line basis over the lease term. Our operating lease expense was $0.3 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026, and for the subsequent years ending December 31, future maturity is as follows:


(in thousands)
2026	$	800
2027		1,093
2028		1,123
2029		1,154
2030		1,186
Thereafter		6,089
Future lease payments, gross		11,445
Less: Imputed interest		(2,478	)
Operating lease liability	$	8,967