Note 8 - Leases

6 Months Ended

Jun. 30, 2026

8.	Leases

We have operating leases primarily associated with our corporate offices, ancillary office locations associated with our recent acquisition of Mercury and regional service centers. Additionally, we have operating leases for certain equipment. Our leases have remaining lease terms of 1 to 10 years, some of which include options, at our discretion, to extend the leases for additional periods generally on one-year revolving periods. Other leases allow for us to terminate the lease based on appropriate notification periods. For certain of our leased offices, we sublease a portion of the unoccupied space. The components of lease expense associated with our lease liabilities and supplemental cash flow information related to those leases were as follows (dollar amounts in thousands):

	*For the Three Months Ended June 30,*						*For the Six Months Ended June 30,*
	*2026*			*2025*			*2026*			*2025*
Operating lease cost, gross	$	1,222		$	804		$	2,342		$	1,586
Sublease income		(42	)		(25	)		(50	)		(49	)
Net Operating lease cost	$	1,180		$	779		$	2,292		$	1,537
Cash paid under operating leases, gross	$	1,293		$	768		$	2,569		$	1,530

Weighted average remaining lease term - months		91			105
Weighted average discount rate		6.9	%		7.1	%

As of June 30, 2026, scheduled payments of lease liabilities were as follows (in thousands):

	*Gross Lease Payment*			*Payments received from Sublease*			*Net Lease Payment*
2026 (Remainder of 2026)	$	2,539		$	(51	)	$	2,488
2027		4,373			(43	)		4,330
2028		3,757			—			3,757
2029		3,592			—			3,592
2030		3,577			—			3,577
Thereafter		13,187			—			13,187
Total lease payments		31,025			(94	)		30,931
Less imputed interest		(7,457	)
Operating lease liabilities	$	23,568