The Company has an operating lease for its corporate office headquarters in Seattle, WA. In April 2026, the Company entered into a sublease agreement for the full premises of this operating lease. The sublease commences on May 1, 2026 and will run through the end of the Company's existing lease term in September 2027. Under ASC 842, Leases, and ASC 360, Property, Plant, and Equipment, subleasing the entire premises of the head lease qualifies as a triggering event to assess for impairment. Under the ASC 360 two-step recoverability test, the Company assessed there to be an impairment loss of approximately $0.2 million from the terms of the sublease agreement.

The Company notes that under ASC 855, Subsequent Events, this impairment loss qualifies as a recognized subsequent event for the purposes of the three months ended March 31, 2026, as the sublease contract had been approved and committed to by management in March 2026. The $0.2 million impairment loss is included within Interest income (expense) and other, net on the Consolidated Statement of Operations for the three months ended March 31, 2026. The remaining entries related to the sublease agreement will occur in subsequent periods through the termination of the operating head lease and sublease agreement in September 2027.

The Company recognizes its operating lease agreements in accordance with ASC 842, Leases, and recognizes rent expense on a straight-line basis over the lease term with any lease incentives amortized as a reduction of rent expense over the lease term. Assets under operating leases are included in Right-of-use lease assets, and the related liabilities are included in Operating lease liability, current and Operating lease liability, non-current on the Consolidated Balance Sheets.

Lease cost, other than the impairment loss amount, recognized in the Consolidated Statements of Operations and other lease information is summarized as follows:


	Three Months Ended March 31,
(In Thousands, Except Terms in Years and Percentages)	2026			2025
Operating lease cost	$	95		$	144
Finance lease cost:
Interest on lease liabilities		—			11
Variable and short-term lease cost		—			10
Total lease cost	$	95		$	165
Other information:
Weighted-average remaining lease term - operating leases		1.5			2.4
Weighted-average remaining lease term - finance leases		—			0.7
Weighted-average discount rate - operating leases		7.5	%		7.1	%
Weighted-average discount rate - finance leases		—			14.1	%
Cash paid for operating leases	$	95		$	141
Cash paid for finance leases	$	—		$	115

As of March 31, 2026, the Company’s future payments under operating lease liabilities were as follows:


(In Thousands)
2026	$	302
2027		311
Gross future lease payments	$	613
Less: imputed interest		(35	)
Present value of total lease liabilities	$	578
Less: current portion of lease liabilities		(373	)
Total long-term lease liabilities	$	205