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LEASES | 9 Months Ended
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Sep. 30, 2025
Leases |
LEASES | NOTE 10– LEASES The Company accounts for its leases under Accounting Standard Codification (“ASC”) Topic 842, “Leases”. The Company determines at its inception whether an arrangement that provides us control over the use of an asset is a lease. We recognize at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. We have elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Our current long-term leases include an option to extend the term of the lease prior to the end of the initial term. It is not reasonably certain that we will exercise the option and have not included the impact of the option in the lease term for purposes of determining total future lease payments. As our lease agreement does not explicitly state the discount rate implicit in the lease, we use our promissory note borrowing rate to calculate the present value of future payments. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. For our real estate leases, we apply a practical expedient to include these non-lease components in calculating the ROU asset and lease liability. For all other types of leases, non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred. We have operating leases for office facilities. We do not have any finance leases. Lease expenses are included in Segment management and technology expenses on the accompanying Consolidated Statements of Operations. The components of lease expense were as follows (in thousands):
Schedule of components of lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Operating lease cost |  | $ | 13 |  |  | $ | 50 |  |  | $ | 52 |  |  | $ | 145 |
Short-term lease cost |  |  | 4 |  |  |  | 4 |  |  |  | 12 |  |  |  | 13 |
Total lease costs |  | $ | 17 |  |  | $ | 54 |  |  | $ | 64 |  |  | $ | 158 |
Supplemental information related to leases was as follows (dollars in thousands):
Schedule of supplemental information related to leases |  |  |  |  |  |  |  |
|  | September 30, 2025 |  |  | December 31, 2024 |
Operating Lease right-of-use asset |  | $ | 78 |  |  | $ | 236 |
Current portion of operating lease liabilities |  | $ | 51 |  |  | $ | 108 |
Non-current portion of operating lease liabilities |  |  | 32 |  |  |  | 139 |
Total operating lease liabilities |  | $ | 83 |  |  | $ | 247 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 53 |  |  | $ | 126 |
Right-of-use assets obtained in exchange for operating lease liabilities |  | $ | - |  |  | $ | - |
Weighted-average remaining lease term for operating leases (years) |  |  | 1.6 |  |  |  | 2.3 |
Weighted average discount rate for operating leases |  |  | 7.4 | % |  |  | 6.0 | %
The following is a reconciliation of future undiscounted cash flows to the operating lease liabilities on our consolidated balance sheets as of September 30, 2025 (in thousands):
Schedule of operating lease liabilities maturities |  |  |  |
Year ending December 31, |  |  |
2025 (Excluding nine months ended September 30, 2025) |  | $ | 14 |
2026 |  |  | 55 |
2027 |  |  | 19 |
Total future lease payments |  |  | 88 |
Less: imputed interest |  |  | (5 | )
Present value of future lease payments |  |  | 83 |
Less: current portion of lease liabilities |  |  | (51 | )
Long-term lease liabilities |  | $ | 32 |

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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