The Company has leases mainly consisting of the corporate office. The lease had an original lease term of two years and is extended on a yearly basis unless written notice is provided nine months prior to the expiration date. Future renewal options that are not likely to be executed as of the consolidated balance sheet date are excluded from right-of-use assets and related lease liabilities. The lease is automatically renewed at a cost increase of 2% on an annual basis, unless we provide written notice nine months prior to the respective expiration dates.

Operating lease right of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. For finance leases, the implicit rate is used, since it is readily available.

The components of lease expense were as follows (in thousands):

The Company made cash payments regarding operating leases of $385,000 and $27,000 for the years ended December 31, 2025 and 2024, respectively. The Company made cash payments regarding finance leases of $25,000 and $18,000 for the years ended December 31, 2025 and 2024, respectively.

The following table shows right-of-use assets and lease liabilities (in thousands):

Lease liability maturities are as follows (in thousands):

The weighted-average remaining lease term related to the Company’s operating lease liabilities as of  December 31, 2025 and December 31, 2024 was 1.0 years and 1.9 years, respectively. The discount rate related to the Company’s operating lease liabilities as of December 31, 2025 and December 31, 2024 was 5.0% for each of the years.

The weighted-average remaining lease term related to the Company’s finance lease liabilities as of December 31, 2025 and December 31, 2024 was 2.2 years and 0.2 years, respectively. The discount rate related to the Company’s operating lease liabilities as of December 31, 2025 and December 31, 2024 was 3.5% and 3.0%, respectively.