Leases

12 Months Ended

Dec. 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 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. See Note 2 - Summary of Significant Accounting Policies.

During the years ended December 31, 2024, 2023, and 2022, the Company reduced or fully vacated leased office space in certain offices, which resulted in a right-of-use asset impairment charge of $2.8 million for the year ended December 31, 2022, and an immaterial right-of-use asset impairment charge for the years ended December 31, 2024 and 2023. The fair value of the right-of-use assets was based on the estimated sublease income for the space taking into consideration the time period it will take to obtain a subtenant, the applicable discount rate, and the sublease rate. For the years ended December 31, 2024, 2023, and 2022, the Company wrote off an immaterial amount of leasehold improvements and other property and equipment related to these locations. The measurement of the right-of-use asset impairments, using the assumptions described, is a Level 3 fair value measurement. See Note 10 - Fair Value Measurements for a description of Level 3 inputs.

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


Classification on Consolidated Balance Sheets:	December 31, 2024			December 31, 2023
	(amounts in thousands)
Operating lease right-of-use assets	$	2,468		$	2,599
Operating lease liabilities - current	$	2,089		$	2,604
Operating lease liabilities - non-current	$	1,782		$	2,663

	December 31, 2024			December 31, 2023
Weighted average remaining lease term	2.6 years			2.2 years
Weighted average discount rate	7.05		%	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 consolidated balance sheets as of December 31, 2024:


Years Ending December 31:	(amounts in thousands)
2025	$	2,289
2026	728
2027	602
2028	522
2029	136

Total minimum lease payments	4,277
Less: amount of lease payments representing interest	(406)
Present value of future minimum lease payments	3,871
Less: operating lease liabilities - current	(2,089)
Operating lease liabilities - non-current	$	1,782

Other Information

The table below provides information regarding supplemental cash flows:


	Year Ended December 31,
	2024		2023		2022
	(amounts in thousands)
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,212	$	4,859	$	5,753
Right-of-use assets acquired under operating lease	$	1,433	$	1,040	$	473

The components of lease expense are as follows:


	Year Ended December 31,
	2024		2023		2022
	(amounts in thousands)
Amounts Included in Consolidated Statements of Operations and Comprehensive (Loss) Income:
Operating lease expense	$	1,317	$	1,681	$	2,550
Short-term lease expense	$	1,439	$	3,209	$	5,114
Variable and other lease costs	$	851	$	724	$	2,195

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 consolidated statements of operations and comprehensive (loss) income, depending on the nature of the leased asset. Operating lease expense is reported net of sublease income, which is not material. Variable and other lease costs for the year ended December 31, 2022 include a benefit associated with the early termination of a lease for one of the Company's corporate offices which was previously restructured.

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