4. Lease commitments

At the inception of a contract, the Company determines whether the contract is or contains a lease based on the facts and circumstances present. Operating leases with terms greater than one year are recognized on the consolidated balance sheets as Operating lease right-of-use assets, Current portion of operating lease liability, and Operating lease liability, net. Financing leases with terms greater than one year are recognized on the consolidated balance sheets as Property and equipment, net, Accrued expenses and other current liabilities, and Other non-current liabilities. The Company has elected not to recognize leases with terms of one year or less on the consolidated balance sheets.

Lease obligations and their corresponding assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is typically not readily determinable, the Company utilizes an appropriate incremental borrowing rate, which is the rate incurred to borrow an amount equal to the applicable lease payments on a collateralized basis, over a similar term, and in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The components of a lease are split into three categories: lease components, non-lease components and non-components; however, the Company has elected to combine lease and non-lease components into a single component. Rent expense associated with operating leases is recognized over the expected term on a straight-line basis. In connection with financing leases, depreciation of the underlying asset is recognized over the expected term on a straight-line basis and interest expense is recognized as incurred.

The Company is party to several noncancelable operating and financing lease agreements that have original lease periods expiring in 2029. Although certain leases include options to renew, the Company does not assume renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The Company's lease agreements do not contain any material residual value guarantees, nor material restrictive covenants. On April 15, 2025, the Company entered into the second amendment of its operating lease agreement, which reduced its approximately 42,685 square feet of office space in New York City (the "Company Headquarters") by 42% for an additional four years. In connection with this lease agreement, the Company is required to establish and maintain a $710 cash collateral account, which has been recorded in non-current restricted cash on the consolidated balance sheets as of December 31, 2025. Additionally, the Company retained the right to use certain furniture, fixtures, and office equipment already installed in the new office space, which the Company had treated as a capital lease. 

For the year ended December 31, 2025, the components of lease costs are as follows:

As of December 31, 2025 and 2024, the weighted average lease-term and discount rate of the Company's leases are as follows:

As of December 31, 2025, scheduled future maturities of the Company's lease liabilities are as follows:

For the year ended December 31, 2025 and 2024, supplemental cash flow information related to leases is as follows: