Leases

12 Months Ended

Dec. 31, 2023

We have operating lease arrangements for corporate offices, cellular towers, storage units and small building spaces. 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 balance as of December 31, 2023. A reduction of $1.3 million was made to right-of-use 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 on the Consolidated Statements of Operations. The following table presents lease costs disaggregated by type:


	For the Year Ended December 31,
(Dollars in thousands)	2023		2022		2021

Operating lease cost	$	4,572	$	6,063	$	6,221
Short-term lease cost	9,267		9,916		10,529
Total lease cost	$	13,839	$	15,979	$	16,750

The following table presents supplemental cash flow information:


	For the Year Ended December 31,
(Dollars in thousands)	2023		2022		2021


Cash paid for amounts included in the measurement of lease liabilities - operating leases	$	5,995	$	5,708	$	5,625

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


	December 31,
(Dollars in thousands)	2023	2022	2021


Weighted-average remaining lease term - operating leases (in years)	4.20	5.00	4.73
Weighted-average discount rate - operating leases	5.84%	4.39%	4.44%

Maturities of lease liabilities as of December 31, 2023, were as follows:


(Dollars in thousands)	For the Year Ended December 31,

2024	$	4,184
2025	2,404
2026	1,921
2027	1,460
2028	1,142
Thereafter	1,488
Total future lease payments	12,599
Imputed interest	(1,513)
Total	$	11,086