LEASES

3 Months Ended

Mar. 31, 2024

The Company's lease population of its right-of-use assets and lease liabilities is substantially related to the rental of office space. The Company enters into lease agreements as a lessee that may include options to extend or terminate early. Some of these real estate leases require variable payments of property taxes, insurance, and common area maintenance, in addition to base rent. Certain of the leases have provisions for free rent months during the lease term and/or escalating rent payments and, particularly for the Company’s longer-term leases for its corporate offices, it has received incentives to enter into the leases, such as receiving up to a specified dollar amount to construct tenant improvements. These leases do not include residual value guarantees, covenants, or other restrictions.

As a part of the Company's restructuring activities, management periodically reduces or fully vacates leased office space, which results in right-of-use impairment charges. The Company may also write off leasehold improvements or other property and equipment related to these locations. The measurement of these impairments is a Level 3 fair value measurement. For the three months ended March 31, 2024 and 2023, the Company did not record any material lease-related impairment charges. See Note 2 - Summary of Significant Accounting Policies for a description of the Company's restructuring activities.

The table below presents the lease-related assets and liabilities included on the condensed consolidated balance sheets:


Classification on Condensed Consolidated Balance Sheets:	March 31, 2024		December 31, 2023
	(amounts in thousands)
Operating lease right-of-use assets	$	1,831	$	2,599
Operating lease liabilities - current	$	2,362	$	2,604
Operating lease liabilities - non-current	$	2,130	$	2,663


	March 31, 2024		December 31, 2023
Weighted average remaining lease term	2.0 years		2.2 years
Weighted average discount rate	6.36	%	6.36	%

The table below reconciles the undiscounted cash flows for each of, and total of, the remaining years to the operating lease liabilities (which do not include short-term leases) recorded on the condensed consolidated balance sheets as of March 31, 2024:


	(amounts in thousands)
Years Ending December 31:
2024	$	1,995
2025	2,186
2026	318
2027	180
2028	114

Total minimum lease payments	4,793
Less: amount of lease payments representing interest	(301)
Present value of future minimum lease payments	4,492
Less: operating lease liabilities - current	(2,362)
Operating lease liabilities - non-current	$	2,130

Other Information

The table below provides information regarding supplemental cash flows:


	Three Months Ended
	March 31,
	2024		2023
	(amounts in thousands)
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	863	$	1,256
Right-of-use assets acquired under operating lease	$	11	$	6

The components of lease expense are as follows:


	Three Months Ended
	March 31,
	2024		2023
	(amounts in thousands)
Amounts Included in Condensed Consolidated Statements of Operations and Comprehensive Income:
Operating lease expense	$	322	$	492
Short-term lease expense	$	597	$	940
Variable and other lease costs	$	628	$	(2)

Operating lease expense, short-term lease expense, and variable and other lease costs are included in selling, general and administrative expenses, direct operating expenses, and restructuring costs in the condensed consolidated statements of operations and comprehensive income, depending on the nature of the leased asset. Operating lease expense is reported net of sublease income, which is not material.

As of March 31, 2024, the Company did not have any material operating leases that had not yet commenced, and does not have any finance lease contracts.