LEASES

6 Months Ended

Jun. 30, 2025

COMPANY AS LESSEE

The Company is a party to a non-cancellable operating lease agreement for office space, which expires in 2033. The Company’s operating lease for this office space includes fixed rent payments and variable lease payments, which are primarily related to common area maintenance and utility charges. The Company elected not to separate lease and non-lease components, and as such, all amounts paid under the lease are classified as either fixed or variable lease payments. The Company has determined that no renewal clauses are reasonably certain of being exercised and therefore has not included any renewal periods within the lease term for this lease.

As of June 30, 2025, the Company held operating lease ROU assets of $2.9 million. Current lease liabilities were $0.4 million, and are included within accrued expenses and other liabilities on the consolidated balance sheets. Non-current lease liabilities were $3.7 million. In measuring these operating lease liabilities, the Company used a weighted average discount rate of 4.4% as of June 30, 2025. The weighted average remaining lease term as of June 30, 2025, was 7.67 years.

Components of Lease Cost

For the three and six months ended June 30, 2025, the Company’s total operating lease cost was comprised of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024

Operating lease cost	$	119	$	119	$	238	$	238

Variable lease cost	7		12		21		23
Total lease cost	$	126	$	131	$	259	$	261

Maturity of Lease Liabilities

As of June 30, 2025, maturities of the Company’s operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows:


	(In thousands)

Six remaining months of 2025	$	288
2026	585
2027	600
2028	615
2029	630
Thereafter	2,101
Total lease payments	$	4,819
Less: imputed interest	(729)
Present value of total lease liabilities	$	4,090

COMPANY AS LESSOR

The Company subleases a portion of its office space to a related party and accounts for the arrangement as an operating lease. Related party sublease rental income is recognized on a straight-line basis and is included in Interest and other income (expense) in the accompanying consolidated statements of operations. For the three and six months ended June 30, 2025, operating lease income from the Company’s sublease was less than $0.1 million. As of June 30, 2025, total remaining future minimum lease payments receivable on the Company’s sublease were $0.2 million.