Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

LEASES

We have operating lease arrangements for corporate offices, cellular towers, storage units and small building space. The building space is used to house infrastructure, such as transmitters, antennae and other various equipment for the Company’s wireless paging services. For leases with a term of 12 months or less, renewal terms are generally of an evergreen nature (either month-to-month or year-to-year). For leases with a term greater than 12 months, renewal terms are generally explicit and provide for one to five optional renewals consistent with the initial term. Many of our leases, with the exception of those for our corporate offices, include options to terminate the lease within one year. Variable lease payments, residual value guarantees or purchase options are not generally present in these leases.

In May 2022, we extended 23 site leases on a Master License Agreement which included a term of 10 years with an option to terminate within 45 days of notification of termination. At that time, we recorded a $2.9 million right-of-use asset and a corresponding operating lease liability for these leases.

In December 2022, we modified an office lease to reduce the leased space and optimize costs, which resulted in a reduction of $1.8 million in right-of-use assets and corresponding operating lease liabilities.

In September 2023, we exercised an early termination option for the lease of our corporate headquarters in Alexandria, Virginia. Upon exercising the option, the lease term was reduced by two years, with a revised end date of September 30, 2024. As a result of the early termination, the Company paid a one-time termination fee of $0.7 million, reflected in our cash balances as of September 30, 2023. A reduction of $1.3 million was made to right-of-use of assets and a corresponding reduction of $2.0 million was made to non-current operating lease liabilities. For additional details, please refer to our discussion on this topic under "Liquidity and Capital Resources" within the Management's Discussion and Analysis of Financial Condition and Results of Operations.

Lease costs are included in technology operations and general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table presents lease costs disaggregated by type:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in thousands)	2023		2022		2023		2022
Operating lease cost	$	1,143	$	1,965	$	3,494	$	4,828
Short-term lease cost	2,298		2,490		6,837		7,569
Total lease cost	$	3,441	$	4,455	$	10,331	$	12,397

The following table presents supplemental cash flow information:

	For the Nine Months Ended September 30,
(Dollars in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities - operating leases	$	3,993	$	4,340

The following table presents the weighted average remaining lease term and discount rate:

	September 30,
(Dollars in thousands)	2023	2022
Weighted average remaining lease term - operating leases (in years)	4.60	5.00
Weighted average discount rate - operating leases	4.98%	4.36%

Maturities of lease liabilities as of September 30, 2023, were as follows:

For the Year Ended December 31,	(Dollars in thousands)
2023 (remaining three months)	$	1,265
2024	4,214
2025	2,420
2026	1,906
2027	1,456
Thereafter	2,618
Total future lease payments	13,879
Imputed interest	(1,637)
Total	$	12,242