Operating Leases

6 Months Ended

Jun. 30, 2026

7.Operating Leases

The Company has various lease agreements for its offices and service delivery centers and has determined that the risks and benefits related to these leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. Lease agreements with a term of less than one year are treated as short-term leases and are accounted for separately, as shown in the table below.

Most of these lease agreements are renewable at the mutual consent of the parties to the contract. These lease agreements are for terms ranging from three to eleven years and, in most cases, provide for rent escalations ranging from 1.75% to 15%.

The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands):


		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
		2026			2025			2026			2025
Rent expense for long-term operating leases		$	378		$	314		$	757		$	629
Rent expense for short-term leases			124			48			197			89
Total rent expense		$	502		$	362		$	954		$	718

The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of June 30, 2026 (in thousands):


Year		Amount
Remaining for 2026		$	785
2027			1,550
2028			1,163
2029			724
2030 and thereafter			192
Total lease payments			4,414
Less: Interest			(582)
Net present value of lease liabilities		$	3,832

Current portion		$	1,287
Long-term portion			2,545
Total		$	3,832

The supplemental information, weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2026 were as follows:


Cash paid for amounts included in the measurement of lease liabilities (in thousands):
Operating cash flows from operating leases	$	757
Right-of-use assets obtained in exchange for new operating lease liabilities	$	37

Weighted-average lease term remaining (in months)		33
Weighted-average discount rate		9.14	%