Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

5. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 4, we leased the property pursuant to a master lease for an initial term extending through September 30, 2030, with two five-year extensions. The extension options are not recognized as part of the right-of-use asset and lease liability. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the initial lease term. At September 30, 2024, the weighted average remaining lease term was 6 years and the weighted average discount rate was 3.75%.

Because the rate implicit in the lease is not readily determinable, we used our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:

	September 30,		December 31,
(in thousands)	2024		2023
	(unaudited)
Operating right-of-use asset, net	$	5,666	$	6,288
Operating lease liability, current portion	$	824	$	780
Operating lease liability, net of current portion		5,087		5,708
	$	5,911	$	6,488

Operating lease expense is recognized on a straight-line basis over the lease term. Our operating lease expense was $266 and $265 for the three months ended September 30, 2024 and 2023, respectively and $796 and $795 for the nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024, and for the subsequent years ending December 31, future maturity is as follows:

(in thousands)
2024 (remaining)	$	257
2025		1,035
2026		1,064
2027		1,093
2028		1,123
Thereafter		2,037
Future lease payments, gross		6,609
Less: Imputed interest		(698	)
Operating lease liability	$	5,911