Operating Leases

6 Months Ended

Jun. 30, 2025

The Company has an operating lease for one office which expires on September 30, 2025. The Company estimates its incremental borrowing rate at lease commencement to determine the present value of lease payments as the Company's lease does not provide an implicit rate of return. The Company recognizes lease expense on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of ASU No. 2016-02, Leases (Topic 842), the Company elected to account for non-lease components associated with its leases and lease components as a single lease component. The Company's lease includes an option for the Company to extend the lease term and/or sub-lease space in whole or in part.

Operating lease liabilities and right-of-use assets were recorded in the following captions of the Company's balance sheet as follows (in thousands):


	June 30, 2025		December 31, 2024
Right-of-Use Assets:
Other assets	$	47	$	138
Total Right-of-Use Assets	$	47	$	138

Operating Lease Liabilities:
Accrued liabilities	$	47	$	137

Total Operating Lease Liabilities	$	47	$	137

As of June 30, 2025, the weighted average remaining lease term for the Company's operating lease was 0.25 years, and the weighted average discount rate for the Company's operating lease was 9.625%. As of December 31, 2024, the weighted average remaining lease term for the Company's operating lease was 0.75 years, and the weighted average discount rate for the Company's operating lease was 9.625%.

Future minimum lease payments under the lease agreement as of June 30, 2025 were as follows (in thousands):


Years ended	Operating Leases





2025	48
Total lease payments	48
Less: Amounts representing interest	(1)
Present value of lease liabilities	$	47