In February 2023, the Company entered into a sublease agreement (“Initial Sublease”) for the previous office space located at One World Trade Center.

In January 2025, the Company entered into an amended sublease agreement (the “First Amendment”) to terminate the existing space in its corporate office and commence occupancy of different space within the same building. The First Amendment was treated as a lease modification to the Initial Sublease which resulted in the recognition of a gain on modification of $2.3 million which is included in selling, general and administrative expenses. The Company also recorded a right-of-use asset and corresponding lease liability of $23.9 million during the three months ended March 31, 2025. Based on the Company’s past experience and current expectations for administrative office needs, the Company determined the lease term to be approximately six years. As of March 31, 2025, the remaining lease term for the Company’s operating lease was 6.0 years with the discount rate of 7.12%. 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 three months ended March 31, 2025, the Company recognized a right-of-use asset and lease liability, both, of $1.5 million in connection to this lease. As of March 31, 2025, right-of-use asset and lease liability related to the finance lease were $5.4 million and $5.5 million, respectively, and the weighted average remaining lease term was 3.1 years, with a weighted average discount rate of 9.5%.

Lease expenses recognized were as follows:


	Three months ended March 31,
	2025		2024
Operating lease expense	$	971	$	583
Finance lease expense:
Amortization of right-of-use assets		412		110
Interest on lease liabilities		113		35

Future minimum lease payments of the Company’s leases as of March 31, 2025 were as follows:


	Operating lease			Finance lease
2025	$	1,639		$	1,689
2026		2,478			2,139
2027		4,791			1,639
2028		4,807			812
2029		11,284			1
Thereafter		6,317			—
Total lease payments		31,316			6,280
Less: imputed interest		(6,957	)		(784	)
Present value of lease liabilities	$	24,359		$	5,496