Annual report pursuant to Section 13 and 15(d)

Leases

v3.24.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
Operating Leases
The Company has operating leases primarily consisting of office space with remaining lease terms of 1 to 7 years, subject to certain renewal options as applicable.
Leases with an initial term of twelve months or less are not recorded on the balance sheet, and the Company does not separate lease and non-lease components of contracts. There are no material residual guarantees associated with any of the Company’s leases, and there are no significant restrictions or covenants included in the Company’s lease agreements. Certain leases include variable payments related to common area maintenance and property taxes, which are billed by the landlord, as is customary with these types of charges for office space.
Our lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings and comparable quality and derived an imputed rate, which was used in a portfolio approach to discount its real estate lease liabilities. We used estimated incremental borrowing rates for all active leases.
Lease Costs
The table below presents certain information related to the lease costs for the Company’s operating leases for the periods indicated (amount in thousands):
Year Ended December 31,
2023 2022
Operating lease expense $ 1,663  $ 1,856 
Short-term lease expense 701  550 
Total lease cost $ 2,364  $ 2,406 
Lease Position as of December 31, 2023 and 2022
Right of use lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (amount in thousands):
December 31,
2023 2022
Assets
Lease right of use assets $ 4,150  $ 7,363 
Total lease assets $ 4,150  $ 7,363 
Liabilities
Current liabilities:
Lease liability - current portion $ 1,504  $ 1,609 
Noncurrent liabilities:
Lease liability, net of current portion 3,824  5,241 
Total lease liability $ 5,328  $ 6,850 
Lease Terms and Discount Rate
The table below presents certain information related to the weighted average remaining lease term and the weighted average discount rate for the Company’s operating leases as of:
December 31,
2023 2022
Weighted average remaining lease term (in years) - operating leases 3.9 4.7
Weighted average discount rate - operating leases 6.33  % 6.19  %
Future Minimum Lease Payments
Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of December 31, 2023, for the following five fiscal years and thereafter were as follows (amount in thousands):
Years Ended December 31, Operating Leases
2024 $ 1,785 
2025 1,479 
2026 1,066 
2027 969 
2028 709 
2028 and thereafter — 
Total Minimum Lease Payments 6,008 
Less effects of discounting (680)
Present value of future minimum lease payments $ 5,328