LEASES |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES |
NOTE 11—LEASES
During the three months ended March 31, 2026, the Company committed to a plan to vacate three leased facilities in connection with the 2026 Reorganization Plan discussed in Note 3—Segment Reporting. Upon approval of the 2026 Reorganization Plan, the Company determined that the remaining useful lives of the related ROU assets were shortened to reflect the revised period over which the assets are expected to provide economic benefit. Accordingly, the Company revised the amortization period of the ROU assets to end on the expected vacate dates. Although the Company intends to cease use of the leased properties as of those dates, the Company remains contractually obligated for lease payments through the end of the respective lease terms, unless and until a replacement tenant is identified.
During the three months ended June 30, 2026, the Company terminated two of the three facilities, effective April 30, 2026 and June 30, 2026. In connection with the terminations, the Company derecognized the remaining lease liabilities and right-of-use assets associated with the premises and settled its remaining obligations under the leases. As a result of these transactions, the Company recognized a net gain of $0.6 million during the six months ended June 30, 2026, which is reflected in “Restructuring and related” in the Condensed Consolidated Statements of Operations, and in “Other” adjustments within the operating activities in the Condensed Consolidated Statements of Cash Flows. The Company vacated the remaining facility during the three months ended June 30, 2026, and the Company remains contractually obligated for lease payments at that location through the end of the lease term unless replacement tenants are identified or the agreement is terminated.
Subsequent to June 30, 2026, the Company entered into an agreement to terminate the third facility, effective August 31, 2026, resulting in an expected reduction in remaining lease liability of $0.6 million.
The Company's operating leases primarily consist of real estate leases such as offices. During the three months ended June 30, 2026 and 2025, operating lease expense was $2.0 million and $1.0 million, respectively. During the six months ended June 30, 2026 and 2025, operating lease expense was $3.5 million and $2.1 million, respectively. Included in operating lease expense for the three and six months ended June 30, 2026 is approximately $1.0 million and $1.3 million, respectively, of accelerated amortization of ROU assets related to the three facilities identified to be vacated under the 2026 Reorganization Plan. This accelerated amortization is non-cash and is reflected in “Restructuring and related” in the Condensed Consolidated Statements of Operations.
The Company does not have any finance leases. Total variable and short-term lease payments were immaterial for all periods presented. As of June 30, 2026, the Company did not have any material additional operating leases that have not yet commenced.
Supplemental balance sheet information related to operating leases are as follows:
Operating lease liability maturities:
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