Leases are accounted for under ASC Topic 842. The Company made an accounting policy election not to apply the recognition requirements to short-term leases. The Company recognizes the lease payments for short-term leases in the consolidated statements of operations on a straight-line basis over the lease term, and variable lease payments in the period in which the obligation for those payments is incurred. Therefore, the Company is not recognizing a lease liability or right-of-use asset for any lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to extend the term or purchase the underlying asset that the Company is reasonably certain to exercise. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has entered into a lease agreement for the Company’s principal executive offices located in New York, NY. The lease does not include any restrictions or covenants that had to be accounted for under the lease guidance.

In February 2023, the Company entered into a ten-year agreement to sublease office space at One World Trade Center, which began in April 2023. Based on the Company's past experience and current expectation for administrative office needs, the Company determined the lease term to be five years. As of June 30, 2024 and June 30, 2023, the remaining lease term for the Company's operating lease was 3.8 years and 4.8 years, respectively, with the discount rate unchanged at 12.0%. The interest rate implicit in lease contracts is typically not readily determinable and as such, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment.

The Company entered into a fleet lease program beginning the first quarter of 2024. The lease agreement includes an initial 12-month noncancelable period with monthly renewal options thereafter. Lease terms range from approximately 40 to 50 months and are classified as finance leases. During the six months ended June 30, 2024, the Company recognized a right-of-use asset and lease liability, both, of $4.6 million in connection to this lease. As of June 30, 2024, right-of-use asset and lease liability related to the finance lease were both $4.2 million, and the weighted average remaining lease term was 3.5 years, with a weighted average discount rate of 9.6%.

Lease expenses recognized were as follows:


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Operating lease expense	$	583	$	689	$	1,166	$	1,007
Finance lease expense
Amortization of right-of-use assets		263		—		373		—
Interest on lease liabilities		86		—		121		—

Future minimum lease payments of the Company’s leases as of June 30, 2024 were as follows:


	Operating lease			Finance lease
2024	$	668		$	783
2025		1,976			1,496
2026		2,521			1,407
2027		2,521			952
2028		3,204			280
Thereafter		—			—
Total lease payments		10,890			4,918
Less imputed interest		(2,642	)		(696	)
Present value of lease liabilities	$	8,248		$	4,222