The Company follows the guidance under ASC 842, “Leases” for its operating leases. The Company’s operating leases consist of office space located primarily in the United States. The Company does not have any leases classified as financing leases.


	Years Ended December 31,
	2025		2024
Operating lease cost	$	4,453	$	5,482
Variable lease cost	1,868		2,307
Operating lease cost	6,321		7,789
Short-term lease cost	293		106
Total lease cost, net	$	6,614	$	7,895

Net rent expense is included in general and administrative expense in the accompanying consolidated statements of operations. During the years ended December 31, 2025 and 2024, the Company made cash payments of $6.4 million and $9.0 million, respectively, on its operating leases, all of which were included in cash flows from operating activities within the consolidated statements of cash flows.

Sublease rental income is recognized as a reduction to the related lease expense on a straight-line basis over the sublease term. For the years ended December 31, 2025 and 2024, the Company recorded rent income related to a sublease of $0.9 million and $1.3 million, respectively. The sublease income for the year ended December 31, 2024 was related to a sublease agreement with an affiliate of the Chief Executive Officer. See Note 16, “Related Party Transactions,” to these consolidated financial statements for additional information.


	Operating Leases
Years Ending December 31,
2026	$	6,395
2027	6,590
2028	6,791
2029	7,001
2030	6,272
Thereafter	1,019
Total	$	34,068
Less present value discount	(7,515)
Operating lease liabilities	$	26,553

As of December 31, 2025 and 2024, the Company’s operating leases had a weighted average remaining lease term of 5.0 years and 6.0 years and a weighted-average discount rate of 9.98% and 9.98%, respectively. The Company’s lease agreements do not provide an implicit rate and as a result, the Company used an estimated incremental borrowing rate, which was derived from third-party information available at the time the Company adopted ASC 842 in determining the present value of future lease payments. The rate used is for a secured borrowing of a similar term as the right of use asset. The fair value was estimated using an income approach based on management’s forecast of future cash flows expected to be derived based on current sublease market rent.

The Company assesses impairment of ROU assets when an event and change in circumstance indicates that the carrying value of such ROU assets may not be recoverable. If an event and a change in circumstance indicates that the carrying value of an ROU asset may not be recoverable and the estimated fair value attributable to the ROU asset is less than its carrying value, an impairment loss equals to the excess of the ROU asset’s carrying value over its fair value is recognized.

The fair values of ROU assets were estimated using an income approach based on management’s forecast of future cash flows expected to be derived based on the sublease market rent. First, the Company tests the asset group for recoverability by

comparing the undiscounted cash flows of the asset group, which include expected future lease payments related to the lease agreement offset by expected sublease income, to the carrying amount of the asset group. If the first step of the long-lived asset impairment test concludes that the carrying amount of the asset group is not recoverable, the Company performs the second step of the long-lived asset impairment test by comparing the fair value of the asset group to its carrying amount and recognizing a lease impairment charge for the amount by which the carrying amount exceeds the fair value. To estimate the fair value of the asset group, the Company relies on a discounted cash flow approach using market participant assumptions of the expected cash flows.

The Company did not have any ROU asset impairment charges for the years ended December 31, 2025 and 2024. The ROU impairment charges are included in asset impairment charges in the consolidated statements of operations.

In 2024, the Company amended its lease associated with its corporate headquarters located in Irvine, California. The amendment extended the lease term five years through February 2030 and reduced the leased square footage. The lease extension was accounted for as a lease modification, and the Company remeasured its lease liability and ROU asset using an incremental borrowing rate of 11.5% and recognized a non-cash lease liability of $3.0 million and the related non-cash ROU asset of $3.0 million. The lease classification remained as an operating lease. The Company also paid $0.1 million to terminate a lease agreement for one of the offices. In conjunction with the early lease termination, the Company reported a gain of $0.1 million which is recognized as a reduction to the related lease expense. The Company also de-recognized the remaining ROU asset of $0.2 million and a lease liability of $0.4 million on the consolidated balance sheet related to early lease termination.