The Company has operating leases primarily consisting of office space with remaining lease terms of less than one year to five years, subject to certain renewal options as applicable.

Leases with an initial term of twelve months or fewer are not recorded on the balance sheet, and the Company does not separate lease and non-lease components of contracts. There are no material residual guarantees associated with any of the Company’s leases, and there are no significant restrictions or covenants included in the Company’s lease agreements. Certain leases include variable payments related to common area maintenance and property taxes, which are billed by the landlord, as is customary with these types of charges for office space.

Our lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings to derive an imputed rate, which was used in a portfolio approach to discount its real estate lease liabilities. The Company used estimated incremental borrowing rates for all active leases.

The table below presents certain information related to lease costs for the Company’s operating leases (amounts in thousands):


	Three Months Ended March 31,
	2026		2025
Operating lease expense	$	376	$	357
Short-term lease expense	153		144
Total lease cost	$	529	$	501

The following table presents the weighted average remaining lease term and the weighted average discount rate related to operating leases:


	March 31, 2026		December 31, 2025
Weighted average remaining lease term (in years) - operating leases	3.0		3.2
Weighted average discount rate - operating leases	8.42	%	8.33	%


Years Ended December 31,	Operating Leases
2026 (remaining)	$	1,557
2027	1,924
2028	1,345
2029	196
2030	123
Thereafter	280
Total minimum lease payments	5,425
Less effects of discounting	(656)
Present value of future minimum lease payments	$	4,769