Leases

9 Months Ended

Sep. 30, 2024

NOTE 15. LEASES

The Company determines if a contract is a lease at inception. We have leases primarily for office facilities and information technology equipment. All of our leases are classified as operating leases.

Supplemental balance sheet information related to the Company’s operating leases as of September 30, 2024 and December 31, 2023 was as follows (in thousands):


	September 30, 2024		December 31, 2023
Operating lease ROU assets(1)	$	20,679	$	9,665
Current portion of operating lease liabilities(2)		3,136		4,675
Noncurrent portion of operating lease liabilities(2)		18,680		6,487
Total operating lease liabilities	$	21,816	$	11,162

(1) ROU assets are recorded in other assets on the unaudited Condensed Consolidated Balance Sheets.

(2) Current portion and noncurrent portion of operating lease liabilities are recorded in other liabilities on the unaudited Condensed Consolidated Balance Sheets.


	September 30, 2024			December 31, 2023
Weighted-average remaining lease term	8.4 years			4.0 years
Weighted-average discount rate		6.7	%		4.7	%

The components of lease expense and other lease information as of and during the three and nine month periods ended September 30, 2024 and 2023 are as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Operating lease cost	$	1,261		$	1,293		$	3,869		$	3,897
Short-term lease cost		—			—			—			—
Variable lease cost		302			481			1,293			1,411
Gross lease cost		1,563			1,774			5,162			5,308
Sub-lease income		(153	)		(204	)		(589	)		(610	)
Net lease cost	$	1,410		$	1,570		$	4,573		$	4,698

Other lease information
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for operating leases	$	1,384		$	1,419		$	4,228		$	4,237

In general, our leases have remaining lease terms of approximately 1 year to 12 years. These leases generally contain renewal options for periods ranging from two to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments. Expenses associated with operating leases are recorded in general and administrative expenses on the unaudited Condensed Consolidated Statement of Operations. Variable lease costs, such as utilities and common area maintenance charges, are excluded from lease liabilities and expensed as incurred. The variable lease costs are determined based on terms in the lease contracts and primarily relate to usage of the ROU asset and services received from the lessor.

The following table summarizes the maturity of our operating lease liabilities as of September 30, 2024 (in thousands):


	Operating Leases
2024	$	1,289
2025		3,988
2026		3,757
2027		3,296
2028		2,759
Thereafter		14,379
Total undiscounted lease payments		29,468
Less: imputed interest		7,652
Total lease liabilities	$	21,816