Leases

6 Months Ended

Jun. 30, 2026

8. Leases

As of June 30, 2026, all of the Company’s leases are classified as operating and primarily consist of office space leases expiring in 2026 through 2029. The Company elected not to include short-term leases (i.e., leases with initial terms of less than twelve months), or equipment leases (deemed immaterial) on the statements of financial condition. The Company leases some miscellaneous office equipment, but they are immaterial and therefore the Company records the costs associated with this office equipment on the statements of operations rather than capitalizing them as lease right-of-use assets. The balance of the lease right-of-use assets and lease liabilities are displayed on the statements of financial condition and the below tables display further detail on the Company’s leases.

Lease Term and Discount Rate

As of

June 30,
2026

As of

December 31,
2025

Weighted average remaining lease term – operating leases (in years)

2.0

2.5

Weighted average discount rate – operating leases

7.3

7.8

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	354,000	$	268,000	$	682,000	$	538,000
Short-term lease cost		81,000		96,000		129,000		196,000
Variable lease cost		94,000		78,000		172,000		175,000
Total Rent and occupancy	$	529,000	$	442,000	$	983,000	$	909,000

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	391,000	$	290,000	$	751,000	$	557,000

Lease right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	472,000	$	20,000	$	472,000	$	20,000

Lease Commitments

Future annual minimum payments for operating leases with initial terms of greater than one year as of June 30, 2026 were as follows:

Year	Amount
2026	$	793,000
2027		1,119,000
2028		632,000
2029		12,000
Remaining balance of lease payments		2,556,000
Less: difference between undiscounted cash flows and discounted cash flows		175,000
Lease liabilities	$	2,381,000

In January 2026, the Company entered into a ten-year lease agreement for an office space located in West Hollywood, CA with a commencement date of July 2026. This branch office contains approximately 10,000 square feet of interior and exterior space, and the average annual rent is $681,000.