NOTE 10—LEASES

Operating leases — During the years ended December 31, 2024 and 2023, the Company leased its office space under operating leases with unrelated entities.

Prior to November 2024, the Company leased 21,293 square feet of office space for its headquarters in Torrance, California, at a base rental of $90,069 per month pursuant to lease, as amended, which was to expire on September 30, 2026. In November 2024, the lease was amended to, among other things, reduce the leased space to 4,639 square feet at a base rental of $18,556 per month and to provide for the upfront payment of approximately $58,483 to fund the cost of demising work on the former leased space. The amended lease became effective on April 2, 2025 and will expire on April 1, 2030. In addition, the Company leases 2,326 square feet of office space in Dubai, United Arab Emirates, at a base rental of AED 11,707 (approximately $3,000) per month, which will expire on June 19, 2026.

Rent expense was $1.1 million and $1.2 million for years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024 and 2023, the Company had an operating lease right-of-use asset of $1.5 million and $2.3 million, respectively and lease liability of $3.2 million and $3.5 million, respectively. As of December 31, 2024 and 2023, the weighted-average discount rate was 12.9%. The weighted average remaining term of the Company’s leases as of December 31, 2024 was 1.7 years.