Leases

12 Months Ended

Dec. 31, 2024

LEASES

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 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.

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)	2024		2023		2022

Operating lease cost	$	3,860	$	4,572	$	6,063
Short-term lease cost	9,174		9,267		9,916
Total lease cost	$	13,034	$	13,839	$	15,979

The following table presents supplemental cash flow information:


	For the Year Ended December 31,
(Dollars in thousands)	2024		2023		2022

Cash paid for amounts included in the measurement of lease liabilities - operating leases	$	4,433	$	5,995	$	5,708
Right-of-use assets obtained in exchange for lease obligations	$	1,566	$	(60)	$	3,966

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


	December 31,
(Dollars in thousands)	2024	2023	2022


Weighted-average remaining lease term - operating leases (in years)	4.30	4.20	5.00
Weighted-average discount rate - operating leases	6.56%	5.84%	4.39%

Maturities of lease liabilities as of December 31, 2024, were as follows:


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

2025	$	2,904
2026	2,464
2027	1,821
2028	1,291
2029	503
Thereafter	990
Total future lease payments	9,973
Imputed interest	(1,200)
Total	$	8,773