Leases

12 Months Ended

Dec. 31, 2024

In 2016, the Company entered into a lease agreement for its principal executive office located in Oakland, California (the “Oakland lease”), for 19,000 square feet of office space, which was subsequently amended resulting in a total of 63,000 square feet of office space being leased. The non-cancellable operating lease expires in February 2026 and includes options to extend the lease term, generally at the then-market rates. The Company excludes extension options that are not reasonably certain to be exercised from its lease terms. The Company’s lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. The Company is responsible for operating expenses that exceed the amount of base operating expenses as defined in the original lease agreement.

During the fourth quarter of 2024, the Company made a decision and ceased use of two floors which was identified as a triggering event to reassess the asset group and test for impairment. This assessment resulted in an impairment of the Oakland lease and recognition of a loss of $1.4 million included within Occupancy expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). The estimated fair value of the right-of-use asset was measured on a nonrecurring basis determined using Level 3 inputs and is based on an income approach using probability weighted discounted future cash flows. See Note 2 “Significant Accounting Policies” on Impairment of Long-Lived Assets for details.

The Company's operating lease costs are as follows:


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	3,372	$	3,372	$	3,372
Variable lease cost	643		490		439
Short-term lease cost	483		247		435
Operating lease impairment	1,443		—		—
Total lease cost	$	5,941	$	4,109	$	4,246

The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants.

The weighted average remaining operating lease term and the weighted average discount rate used in the calculation of the Company's lease assets and lease liabilities were as follows:


	December 31, 2024	December 31, 2023
Weighted average remaining operating lease term (in years)	1.1	2.1
Weighted average discount rate	7.6%	7.7%

Maturities of operating lease liabilities by year are as follows as of December 31, 2024:





2025	$	4,884
2026	879


Total lease payments	$	5,763
Less imputed interest	(266)
Total operating lease liabilities	$	5,497