The Company rents certain office facilities under noncancelable operating leases. As of March 31, 2026, approximately 94,000 square feet of office space is utilized for our sales and recruiting offices, delivery centers, and corporate headquarters. All of our leases are classified as operating leases. The average initial lease term is 3.6 years. Several leases have an option to renew, at our sole discretion, for an additional term. Our present lease terms range from less than one year to 3.5 years with a weighted average of 2.1 years. Leases with an initial term of twelve months or less are not recorded on the balance sheet.

The following table summarizes the balance sheet classification of the lease assets and related lease liabilities:


	March 31, 2026		December 31, 2025
	(in thousands)
Assets:
Long-term operating lease right-of-use assets	$	2,266	$	2,534
Liabilities:
Short-term operating lease liability	$	1,312	$	1,283
Long-term operating lease liability		810		1,138
Total Liabilities	$	2,122	$	2,421

Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows:


	Amount as of March 31, 2026
	(in thousands)
2026 (for remainder of year)	$	1,048
2027		753
2028		259
2029		197
Total	$	2,257
Less: Imputed interest		(135	)
Present value of operating lease liabilities	$	2,122

The weighted average discount rate used to calculate the present value of future lease payments was 5.8%.

We recognize rent expense for these leases on a straight-line basis over the lease term. Rental expense for the three months ended March 31, 2026 and 2025 totaled $0.4 million in each period.

Total cash paid for lease liabilities for the three months ended March 31, 2026 and 2025 totaled $0.4 million in each period.

The Company entered into two new lease arrangements for which the lease commencement dates had not occurred as of March 31, 2026, as discussed below:

On March 5, 2026, the Company entered into a lease agreement (the “Lease”) with EPC-CW15, LLC (the “Landlord”) for approximately 5,895 square feet of office space located at 3300 Olympus Boulevard, Suite 560, Dallas, Texas 75019 (the “Property”). The Lease is expected to commence on August 24, 2026 (or such later date as specified in the Lease) and has an initial term of five years following a five-month rent abatement period, unless earlier terminated in accordance with its terms. The Company has the option to renew the Lease for one additional five-year period.

In addition to the Lease described above, on December 16, 2025, the Company entered into a managed office space service agreement with Symbyont Asset Management Private Limited for office premises in Bengaluru, India, comprising 96 seats and an initial term of 36 months. As lease commencement was contingent upon the premises being made available for the Company's intended use, and fit-outs and formal handover were completed in April 2026, the Company determined April 1, 2026 to be the lease commencement date under applicable accounting guidance.