Right-of-use assets and lease liabilities related to operating leases are recorded when the Company and its subsidiaries are party to a contract, which conveys the right for it to control an asset for a specified period of time. Substantially all of our operating lease arrangements relate to rented office space and real estate for our title operations. The Company is not a party to any material contracts considered finance leases. Right-of-use assets and lease liabilities are recorded as Lease assets and Lease liabilities, respectively, on the Unaudited Consolidated Balance Sheets.

The Company’s operating leases range in term from one to five years. As of June 30, 2026 and December 31, 2025, the weighted-average remaining lease term of our operating leases was 1.9 years and 2.0 years, respectively.

The Company’s lease agreements do not contain material variable lease payments, buyout options, residual value guarantees or restrictive covenants.

Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of lease renewal options is at our sole discretion. We do not include options to renew in our measurement of lease assets and lease liabilities as they are not considered reasonably assured of exercise as of June 30, 2026.

The lease liability is determined by discounting future lease payments using a discount rate based on the Company’s incremental borrowing rate for a fully collateralized fully amortizing loan with maturity similar to the lease term. As of June 30, 2026 and December 31, 2025, the weighted-average discount rate used to determine our operating lease liability was 6.0%.

Lease expense included in general and administrative expenses on the Unaudited Consolidated Statements of Operations was $190,000 and $374,000 for the three and six months ended June 30, 2026, respectively, and $200,000 and $419,000 for the three and six months ended June 30, 2025, respectively.

The following table details lease cost for the three and six-month periods ended June 30, 2026 and 2025 (in thousands):

During both the three and six months ended June 30, 2026, lease liabilities recognized in exchange for operating lease right-of-use assets were $167,000. During the three and six months ended June 30, 2025, lease liabilities recognized in exchange for operating lease right-of-use assets were $0 and $157,000, respectively.

Future minimum rental commitments as of June 30, 2026 under these leases are expected to be as follows (in thousands):