Leases

9 Months Ended

Sep. 30, 2024

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 four months to 10 years and five 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 $12,350 and $9,695 for the nine-month periods ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, the Company had $22,204 of non-cancelable operating lease commitments for four off-campus classroom and laboratory sites that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 7.72 years, with a weighted-average discount rate of 4.16%. The cash paid for operating lease liabilities was $11,054 and $8,339 for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at September 30, 2024, by year and in the aggregate, are as follows:

Year Ending December 31,	Amount
2024	$	3,840
2025		16,632
2026		16,799
2027		16,069
2028		15,872
Thereafter		57,204
Total lease payments	$	126,416
Less interest		19,444
Present value of lease liabilities	$	106,972