The Company has operating leases related to its fleet operations for garage, parking, and clubhouse facilities. These leases have remaining lease terms ranging from approximately two to nine years, some of which include options to extend the lease term for up to five additional years.

The table below presents certain information related to the Company’s lease costs which are included within cost of fleet revenue, net on the condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease costs	$	295	$	194	$	592	$	371
Total lease costs	$	295	$	194	$	592	$	371

The ROU assets and lease liabilities for the operating leases were recorded on the condensed consolidated balance sheet as follows (in thousands):


	June 30, 2026		December 31, 2025
Assets
Operating lease right-of-use assets	$	5,392	$	5,084
Total lease assets	$	5,392	$	5,084

Liabilities
Current liabilities:
Operating lease liabilities, current portion	$	779	$	410

Non-current liabilities:
Operating lease liabilities, net of current portion		4,694		4,733
Total lease liabilities	$	5,473	$	5,143

The weighted average remaining lease term for the operating leases was 7.5 years and the weighted-average discount rate was 7.3% as of June 30, 2026.

Supplemental cash flow information related to the Company’s leases were as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Operating cash flows from operating leases	$	570	$	346

Future minimum lease payments under operating leases as of June 30, 2026 are as follows (in thousands):


Remainder of 2026	$	574
2027		1,157
2028		798
2029		811
2030		826
Thereafter		2,989
Total minimum lease payments		7,155
Less effects of discounting		(1,682	)
Total lease liabilities	$	5,473

As of June 30, 2026 and December 31, 2025, the Company had no unfunded loan commitments. In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and that provide general indemnifications. The Company’s maximum exposure under these arrangements cannot be estimated, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss under these contracts to be remote.

From time to time, the Company may become involved in various legal actions, administrative proceedings and claims in the normal course of business. The Company reviews its legal proceedings on an ongoing basis and provides disclosure and records loss contingencies based on the probability and ability to estimate possible losses arising from legal proceedings. Legal proceedings are subject to inherent uncertainties, and unfavorable rulings or events could result in materially adverse outcomes. The Company is not currently subject to any pending material litigation.