In addition to the ground and parking leases discussed in Note 7, the Company has operating leases for office space and office equipment. The leases have terms that expire between February 2029 and September 2029. The leases on the office space and office equipment contain options for early termination granted to the Company and the lessor. Lease payments are determined as follows:

The following table summarizes the Company’s operating leases (in thousands):


	June 30, 2025			December 31, 2024
Operating Leases:
Right of use assets	$	553		$	606
Lease liabilities	$	(600	)	$	(653	)

Weighted average remaining lease term:	4.2 years			4.7 years
Weighted average discount rate (1):		8.70	%		8.70	%

(1)

The market discount rate is used, when readily determinable, in calculating the present value of lease payments for the operating lease liability. Otherwise, the incremental borrowing rate on the commencement date is used.

The following table summarizes the Company’s operating lease costs and cash payments for the periods presented (in thousands):


	Three Months Ended June 30, 2025		Three Months Ended June 30, 2024		Six Months Ended June 30, 2025		Six Months Ended June 30, 2024
Lease Cost:
Operating lease cost	$	40	$	40	$	80	$	80

Other Information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	40	$	39	$	79	$	77

The following table summarizes the Company’s operating leases cash flow obligations on an undiscounted, annual basis (in thousands):


	Operating Leases
2025	$	81
2026		166
2027		170
2028		174
2029		131
Thereafter		—
Subtotal		722
Less: impact of discount		(122	)
Total	$	600