8. Leases

The Company has entered into a number of operating leases, primarily for office space. These leases have remaining terms which range from 0.2 years to 0.3 years. The renewal option on one lease was exercised in February 2022 for an additional period of three years, extending this lease term to June 2025.

Certain leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Certain agreements contain both lease and non-lease components. The Company has elected to separately account for these components in determining the lease liabilities and right-of-use assets. The Company’s lease agreements generally do not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate was determined based on information available at lease commencement date for the purpose of determining the present value of lease payments. The Company used the incremental borrowing rate on January 1, 2019 for all leases that commenced prior to that date.

All operating lease expenses are recognized on a straight-line basis over the lease term. The Company recognized $46 and $99 of operating lease costs for right-of-use assets during the three months ended March 31, 2025 and 2024, respectively. The Company recognized $5 of rental expense on short-term leases during the three months ended March 31, 2025. No rental expense was recognized on short-term leases during the three months ended March 31, 2024.