Commitments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments | Note 7. Commitments Operating Leases The Company has lease arrangements for its facilities in California as follows.
Under its lease, the Company is required to pay certain maintenance expenses in addition to monthly rent. Rent expense is recognized on a straight-line basis over the lease term for leases that have scheduled rental payment increases. Rent expenses under all operating leases were $284,000 and $568,000 for the three and six months ended June 30, 2025, compared with $345,000 and $805,000 for the corresponding periods in 2024, respectively. In determining the net present value of lease payments, the Company used its incremental borrowing rate of 11.5% based on the information available, including the remaining lease term, at the adoption date of ASC 842. As of June 30, 2025 and December 31, 2024, the weighted-average remaining lease term was 1.64 years and 2.14 years, respectively, for the Company’s leased properties. Future minimum payments under this noncancelable lease is as follows (in thousands):
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