Leases

3 Months Ended

Mar. 31, 2026

Note 12 Leases

The Company leases office space in Los Angeles, California under two arrangements with PCJW Properties LLC ("PCJW"), an entity controlled by the Company's founders (including the Company's CEO). The first is a sublease extended in November 2023 for five additional years ending October 2028, with current monthly rent of $0.007 million subject to annual escalations of 4%. The second is a lease extended in January 2026 for one additional year ending December 2026, with current monthly rent of $0.027 million.

All leases were classified as operating and operating lease expenses are presented within Other operating expenses in the condensed consolidated statements of operations. The Company does not have any finance leases or sublease arrangements where the Company is the sublessor. The Company’s leasing activities are as follows (in thousands):


	For the Three Months Ended
	March 31, 2026		March 31, 2025
Operating lease cost	$	101	$	87
Short-term lease cost		-		-
Total lease cost	$	101	$	87


	For the Three Months Ended
	March 31, 2026			March 31, 2025
Other information:
Cash paid for operating leases	$	101		$	96
Weighted-average remaining lease term - operating lease		1.57			2.23
Weighted-average discount rate - operating lease		10	%		10	%

The future minimum lease payments as of March 31, 2026, were as follows (in thousands):


Year	Related-Party Commitment
2026	$	304
2027		83
2028		71
Total minimum lease payments	$	458
Less: imputed interest	$	(33	)
Total lease liabilities	$	425