LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2026

The Company has operating leases consisting of office space, vehicle leases, computer equipment, and office equipment. Lease terms and options in the Company's operating leases vary dependent upon the underlying leased asset. As of March 31, 2026, we have leases with remaining terms of less than five years, some of which may include no options for renewal and others with options to extend the lease terms from six months to five years.

As of March 31, 2026, the Company is the lessor for five lease agreements related to office space and parking. The terms of the leases vary depending on the property, with remaining terms of less than eight years for each lease, which may include options for renewal or to extend the lease terms.

The components of our operating leases were as follows for the three-month periods ended March 31, 2026 and 2025:


	Three months ended March 31,
	2026		2025

Components of lease expense:
Operating lease expense	$	2,136	$	2,294
Less: lessor income	154		143
Less: sublease income	133		133
Net lease expense	$	1,849	$	2,018

Cash flows related to leases:
Operating cash outflow from operating leases	$	1,867	$	2,034

There have been no allowances for credit losses recorded or write-offs against our receivables related to our lessor agreements because, due to the nature of the operating leases and history of collectability, there is no expectation of credit quality concerns.