7. Operating leases, right-of-use assets and lease liabilities

The Company leases or subleases facilities under operating lease agreements that expire at various dates through 2031. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to deferred lease payments and lease incentives. Renewal options were not included in the right-of-use asset and operating lease liability calculation. As of June 30, 2026, there were no finance leases. There was no impairment recorded for leases for the three and six months ended June 30, 2026 and 2025.

Operating lease expense was $0.5 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively, and was $1.0 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively.