In January 2019, the Company entered into a lease agreement with PCJW Properties LLC ("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 an annual escalation of 5%.

In December 2018, the Company entered into a sublease agreement with 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 an annual escalation of 4%.

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 Six Months Ended,
	June 30, 2025		June 30, 2024
Operating lease cost	$	174	$	173
Short-term lease cost		-		-
Total lease cost	$	174	$	173


	For the Six Months Ended,
	June 30, 2025			June 30, 2024
Other information:
Cash paid for operating leases	$	193		$	184
Weighted-average remaining lease term - operating lease		2.22			2.62
Weighted-average discount rate - operating lease		10	%		10	%

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


Year	Related-Party Commitment
2025 (remaining)	$	193
2026	$	80
2027	$	83
2028	$	71
Total minimum lease payments	$	427
Less: imputed interest	$	(44	)
Total lease liabilities	$	383