15. Leases

The Company leases office space, equipment and furniture, and certain office space is subleased. Management determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

During the third quarter of 2024, the Company exercised an early termination option on its office lease in Virginia. Accordingly, the right of use asset and lease liability were written down by $446. Additionally, the right of use asset and lease liability of $572 relating to office space leased by The Floow were written off in connection with the Divestiture.

During the second quarter of 2025, the Company recognized a net early termination loss of $205 in connection with the termination of its Reno, Nevada lease, and the right-of-use asset and lease liability of $523 and $619, respectively, were written off.

During the third quarter of 2025, the Company entered into a new lease for office space in Ashburn, Virginia with a term of six months. Its previous office space lease in Vienna, Virginia expired in August 2025.