NOTE 16 – LEASES

The Company has various operating lease agreements, which are primarily for office space. These agreements frequently include one or more renewal options and require the Company to pay for utilities, taxes, insurance and maintenance expense. No lease agreement imposes a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At September 30, 2025, the Company has right-of-use assets of $0.4 million and a total lease liability for operating leases of $0.5 million of which $0.3 million is included in long-term lease liabilities and $0.2 million is included in current lease liabilities.  

At September 30, 2025, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in thousands):

During the nine months ended September 30, 2025, the Company entered into a new operating lease and lease amendments. The lease commencement is expected during the fourth quarter of 2025, at which time the Company expects to recognize an additional operating lease liability of approximately $1.3 million based on the present value of the minimum rental payments. The above table does not include future lease payments as the Company has not commenced the lease. The Company also expects to recognize a corresponding increase to ROU assets of approximately $1.3 million, which will represent a non-cash investing and financing activity. No new leases or amendments were entered into during the nine months ended September 30, 2024.

Operating lease expenses were $0.1 million for each of the three months ended September 30, 2025, and September 30, 2024.

Operating lease expenses were $0.2 million for each of the nine months ended September 30, 2025, and September 30, 2024.

Other information related to leases is as follows: