11. Leases

The Company is obligated under various non-cancelable operating leases primarily for office space. The initial terms of the leases expire on various dates through 2032. We determine if an arrangement is a lease at inception.

The components of the Company’s operating lease expenses are reflected in the consolidated statements of income (loss) as follows:

⁽¹⁾ Short-term lease expenses include rent expenses from leases of 12 months or less on the transition date or lease commencement.

⁽²⁾ Variable lease cost includes common area maintenance, property taxes, and fluctuations in rent due to a change in an index or rate.

During the year ended  December 31, 2025 and 2024, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $9.7 million and $8.7 million, respectively.

Other information related to operating leases is as follows:

As of  December 31, 2025 and 2024, our operating leases had weighted average remaining lease terms of 3.1 years and 3.3 years, respectively, and weighted average discount rates of 5.4% and 5.2%, respectively.

The maturity schedule of the operating lease liabilities as of  December 31, 2025, is as follows:

⁽¹⁾ Includes the current portion of operating lease liabilities of $7.5 million, which is reflected in accrued expenses and other current liabilities in the consolidated balance sheets.

As of  December 31, 2025, letters of credit have been issued in the amount of $1.0 million as security for operating leases. The letters of credit are secured by a sublimit of our line of credit (refer to “Note 9 – Line of credit” for further details).