Leases

9 Months Ended

Sep. 30, 2023

Leases

Leases

7. Leases

The Company has operating leases for off-campus classroom and laboratory sites, office space, office equipment, and optical fiber communication lines. These leases have remaining lease terms that range from eight

months to 10 years and eight months. At lease inception, we determine the lease term by assuming no exercises of renewal options due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company had operating lease costs of $3,525 and $2,789 for the three-month periods ended September 30, 2023 and 2022, respectively, and $9,695 and $7,596 for the nine-month periods ended September 30, 2023 and 2022, respectively.

As of September 30, 2023, the Company had $24,077 of non-cancelable operating lease commitments for four off-campus classroom and laboratory sites and $192 for optical fiber communication lines that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 7.99 years, with a weighted-average discount rate of 3.78%. As of September 30, 2023, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at September 30, 2023, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2023	$	2,990
2024		14,102
2025		14,015
2026		13,992
2027		13,385
Thereafter		54,657
Total lease payments	$	113,141
Less interest		16,622
Present value of lease liabilities	$	96,519