Leases

9 Months Ended

Sep. 30, 2025

Note 13 Leases

In December 2018, the Company entered into a sublease agreement with PCJW Properties LLC ("PCJW"), controlled by Company’s founders (including the Company’s CEO), for general office space next to the aforementioned leased property in Los Angeles, California. The lease term was five years subject to early termination by either party, beginning November 2018 and ending October 2023. In November 2023, the Company extended the sublease for five more years ending October 2028. Under the terms of the sublease, the current monthly rent is $0.006 million, subject to annual escalations of 4%.

In January 2019, the Company entered into a second lease agreement with PCJW for office space located in Los Angeles, California. The lease term is seven years, beginning January 1, 2019 and ending December 31, 2025. The current monthly lease payment is $0.03 million, subject to annual escalations of 5%.

All leases were classified as operating and operating lease expenses are presented within Other operating expenses in the condensed consolidated statements of operations. The Company does not have any finance leases or sublease arrangements where the Company is the sublessor. The Company’s leasing activities are as follows (in thousands):


	For the Nine Months Ended,
	September 30, 2025		September 30, 2024
Operating lease cost	$	261	$	260
Short-term lease cost		-		-
Total lease cost	$	261	$	260


	For the Nine Months Ended,
	September 30, 2025			September 30, 2024
Other information:
Cash paid for operating leases	$	289		$	276
Weighted-average remaining lease term - operating lease		2.35			2.46
Weighted-average discount rate - operating lease		10	%		10	%

The future minimum lease payments as of September 30, 2025, were as follows (in thousands):


Year	Related-Party Commitment
2025 (remaining)	$	97
2026		79
2027		83
2028		71
Total minimum lease payments	$	330
Less: imputed interest	$	(35	)
Total lease liabilities	$	295