As part of the merger in 2024, the Company acquired an operating lease with annual cash outflows of approximately $0.4 million through 2030 and a sublease agreement with annual expected cash inflows of approximately $0.3 million through 2027. During 2025, cash paid for amounts included in the measurement of operating lease liabilities was approximately $2.5 million for the year. Further, the Company entered into two non-cancelable operating leases that have not yet commenced for replacement and additional office space for seven to 15 years. The table above excludes $27.1 million of legally binding lease payments for these leases signed but not yet commenced.

The Company’s expected future minimum annual lease payments are as follows:


2026	$	3,124
2027		1,393
2028		850
2029		867
2030		846
Thereafter		2,560
Total minimum lease payments	$	9,640
Less: imputed interest		(1,392	)

Total operating lease liability	$	8,248

The discount rates used to calculate the Company’s initial lease liability ranged from 0.69% - 5.1%, which were the present value of the lease payments and were equal to the treasury bond rates on the dates the respective leases were signed or acquired. The treasury bond rate used was based on the number of years on the lease including any potential extensions included in the agreements. This risk-free rate applied is a permittable practical expedient under ASC 842.

The Company recognized amortization expense related to all their operating leases in the consolidated statements of operations for the periods ending December 31, 2025 and 2024. This expense represents the amortization of the right-of-use asset associated with the operating leases.