| LEASES |
15. LEASES
The Company has operating
leases for office space. The Company’s leases have remaining lease terms of 0.1 years to 8.0 years, some of which may
include options to extend the leases perpetually, and some of which may include options to terminate the leases within one year.
The following table provides
a summary of leases by balance sheet category as of December 31, 2025 and 2024:
| Schedule of supplemental balance sheet information related to leases | |
| | | |
| | |
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Operating right-of-use assets | |
$ | 6,651,000 | | |
$ | 3,697,000 | |
| Operating lease liability - current | |
| 1,776,000 | | |
| 1,627,000 | |
| Operating lease liability - non-current | |
| 5,198,000 | | |
| 2,269,000 | |
The components of lease expenses
for the years ended December 31, 2025 and 2024, were as follows:
| Schedule of lease expenses | |
| | | |
| | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Operating lease cost | |
$ | 1,936,000 | | |
$ | 1,918,000 | |
| Short-term lease cost | |
| - | | |
| - | |
The following tables provides
a summary of other information related to leases for the years ended December 31, 2025 and 2024:
| Schedule of supplemental cash flow information related to leases | |
| | | |
| | |
| | |
December 31, 2025 | | |
December 31, 2024 | |
| Cash paid for amounts included in the measurement of lease liabilities: | |
| | | |
| | |
| Operating cash flows from operating leases | |
$ | 1,970,000 | | |
$ | 1,654,000 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | |
$ | 1,612,000 | | |
$ | 2,080,000 | |
| Weighted-average remaining lease term - operating leases | |
| 4.1 years | | |
| 3.2 years | |
| Weighted-average discount rate - operating leases | |
| 9.0 | % | |
| 8.0 | % |
Maturity of lease liabilities
under the Company’s non-cancellable operating leases as of December 31, 2025, were as follows:
| Schedule of maturities of operating lease liabilities | | |
| | |
| Payments due by period | | |
| |
| 2026 | | |
$ | 2,279,000 | |
| 2027 | | |
| 2,014,000 | |
| 2028 | | |
| 1,746,000 | |
| 2029 | | |
| 1,106,000 | |
| 2030 | | |
| 756,000 | |
| Thereafter | | |
| 326,000 | |
| Total lease payments | | |
| 8,227,000 | |
| Less interest | | |
| (1,270,000 | ) |
| Present value of lease liabilities | | |
$ | 6,957,000 | |
|