Note 18 – Leases

The Company has operating leases for office and operational facilities in the United States related to its continuing operations.

The Company entered into a lease for its corporate office in Englewood, Colorado that commenced on February 1, 2024 and expires on January 31, 2028. The current lease rate is $10,630 per month as of the date of this filing.

In connection with the Drone Nerds acquisition, the Company recognized right-of-use assets and lease liabilities for four office leases: (i) Hollywood Park office, Dania Beach, Florida (expires April 30, 2029; current monthly base rent of $24,587), (ii) Aventura Business Park, Suite B09-10, Miami, Florida (expires January 31, 2031; current monthly base rent of $4,165), (iii) Aventura Business Park, Suite B11, Miami, Florida (expires September 30, 2030; current monthly base rent of $3,453), and (iv) Wynwood office, Miami, Florida (expires April 30, 2032; current monthly base rent of $23,435). These leases were recognized at fair value as part of the purchase accounting for the acquisition of Drone Nerds in November 2025.

Right-of-use assets and lease liabilities associated with the Company’s exited Inpixon Business, including office leases in Frankfurt and Berlin, Germany, are classified as held for sale and presented within discontinued operations. Accordingly, the lease disclosures below exclude leases classified within discontinued operations.

The Company has no other operating or finance leases with terms greater than 12 months.

Right-of-use assets are summarized below (in thousands):

Operating lease cost for the years ended December 31, 2025 and 2024 was approximately $0.1 million and $0.2 million, respectively, which includes immaterial amounts related to short-term and variable lease costs.

Lease liabilities are summarized below (in thousands):

Future minimum lease payments under operating leases are as follows (in thousands):

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date or acquisition date, as applicable. As of December 31, 2025, the weighted average remaining lease term is 4.9 years and the weighted average discount rate used to determine the operating lease liabilities was 9.1%.