11.   LEASES

Lessee:

The Company has operating leases for its corporate headquarters, treatment centers, a training facility, and office equipment. The corporate headquarters is located in Malvern, Pennsylvania, where the Company leases an approximately 42,000 square foot facility comprising office and warehouse space.

During the year ended December 31, 2025, the Company executed a lease modification for its Malvern, Pennsylvania facility, extending the lease term through June 2033 for 32,000 square feet of the premises.

The Company leases an approximately 9,600 square foot facility in Charlotte, North Carolina as a training facility for its NeuroStar Advanced Therapy Systems. The lease ends in September 2027. The Company has an option to extend the lease on its training facility for an additional one-year term; however, the Company has determined it is not reasonably certain to exercise the option at this time after assessing contract, asset, entity and market conditions present upon lease commencement.

The Company has lease agreements related to its treatment centers. These lease agreements range from “month-to-month” to seven years in length.

Operating lease rent expense was $9.5 million, $1.0 million, and $0.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the weighted-average remaining lease term of operating leases was 5.6 years and the weighted-average discount rate was 12.2%.

The following table presents the supplemental cash flow information as a lessee related to leases for the years ended December 31, 2025, 2024 and 2023 (in thousands):

​

​

The following table sets forth by year the required future payments of operating lease liabilities as of December 31, 2025 (in thousands):

​

​

Lessor sales-type leases:

Certain customers have purchased NeuroStar Advanced Therapy Systems on a rent-to-own basis. The lease term is two to four years with a customer option to purchase the NeuroStar Advanced Therapy System at the end of the lease or automatic transfer of ownership of the NeuroStar Advanced Therapy System at the end of the lease.

The following table sets forth the profit recognized on sales-type leases (in thousands):

​

​

The following table sets forth a maturity analysis of the undiscounted lease receivables related to sales-type leases as of December 31, 2025 (in thousands):

​

​

As of December 31, 2025 and 2024, the carrying amount of the lease receivables was $0.3 million. The Company does not have any unguaranteed residual assets.

Lessor operating leases:

NeuroStar Advanced Therapy Systems leased to customers subsequent to January 1, 2019 for which collection is not probable are accounted for as operating leases. For the years ended December 31, 2025, 2024 and 2023, the Company recognized operating lease income of $0.2 million, $0.1 million and $0.2 million respectively.

​

The Company maintained rental equipment, net of $0.1 million and $0.3 million as of December 31, 2025 and 2024, respectively which are included in Property and equipment, net on the Consolidated Balance Sheets. Rental equipment depreciation expense was $0.06 million, $0.09 million and $0.09 million for the years ended December 31, 2025, 2024 and 2023, respectively.