Leases

9 Months Ended

Sep. 30, 2026

Note 10 – Leases

The components of lease expense were as follows (amounts in thousands):

Schedule of Lease Expense

	2026		2025		2026		2025
	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Operating lease cost	$	69	$	111	$	208	$	332
Finance lease cost
Amortization of assets		3		4		8		11
Interest on finance lease obligations		-		-		1		2
Variable lease cost		-		-		-		-
Total net lease cost	$	72	$	115	$	217	$	345

Included in the table above, for the three and nine months ended September 30, 2025, is $0.1 million and $0.3 million, respectively, of operating lease cost for our corporate headquarters. This space was being leased from The Move, LLC. Our CEO and President, each a related party to the Company, had a 24.3% jointly-held ownership interest in The Move, LLC. In December 2025, The Move, LLC closed on the sale of 100% of its interest in the office space to an unrelated party.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

	September 30, 2026		December 31, 2025
Operating leases:
Operating lease ROU assets	$	303	$	477

Current operating lease liabilities	$	422	$	422
Noncurrent operating lease liabilities		178		496
Total operating lease liabilities	$	600	$	918

Finance leases:	September 30, 2026			December 31, 2025
Right of use asset, at cost	$	52		$	76
Accumulated amortization		(39	)		(55	)
Property and equipment, net	$	13		$	21

Current obligations of finance leases	$	13		$	12
Finance leases, net of current obligations		3			13
Total finance lease liabilities	$	16		$	25

Weighted average remaining lease term (in years):
Operating leases		1.6			2.3
Finance leases		1.3			2.0

Weighted average discount rate:
Operating leases		8.5	%		8.4	%
Finance leases		9.0	%		8.9	%

Supplemental cash flow and other information related to leases was as follows (amounts in thousands):

	2026		2025		2026		2025
	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	124	$	121	$	368	$	358
Operating cash flows from finance leases	$	-	$	-	$	1	$	2
Financing cash flows from finance leases	$	3	$	4	$	9	$	11

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	-	$	-	$	-	$	110

Maturities of lease liabilities were as follows (amounts in thousands):

Years Ending December 31st,	Operating Leases			Finance Leases
2026 (remaining three months)	$	116		$	3
2027		457			14
2028		27			-
2029		27			-
2030		18			-
Total lease payments		645			17
Less amount representing interest		(45	)		(1	)
Total lease obligations		600			16
Less current portion		(422	)		(13	)
Long-term lease obligations	$	178		$	3