The Company is a party to various claims and lawsuits incidental to its business. In the Company’s opinion, the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, are not expected to have a material adverse effect on its financial position, liquidity, results of operations or cash flows.

The Company has commitments under operating leases for real estate leased from third parties under non-cancelable operating leases. The Company’s leases typically have lease terms between three years and ten years, with the longest lease term having an expiration date in 2035. Most of these leases include one or more renewal options for five years or less, and certain leases also include lessee termination options. At lease commencement, the Company assesses whether it is reasonably certain to exercise a renewal option, or reasonably certain not to exercise a termination option, by considering various economic factors. Options that are reasonably certain of being exercised are factored into the determination of the lease term, and related payments are included in the calculation of the right-of-use (“ROU”) asset and lease liability.

On December 31, 2023, the Company entered into an amendment for one of the existing leases to relocate to another space within the building, commencing on August 1, 2024. The landlord provides a construction allowance, in the form of reimbursements, of up to $1.4 million related to approved improvements and renovations of the landlord’s property during the construction period. On July 25, 2024, the Company further amended and restated the agreement which modifies the commencement date of the lease to September 1, 2024.

During the three and six months ended June 30, 2024, the Company recognized sublease income of $0.1 million and $0.1 million, respectively, within Other (loss) income in the Company’s Consolidated Statements of Operations.

The components of lease cost are presented in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2024		2023		2024		2023
Components of total lease costs:
Operating lease cost	$	435	$	721	$	863	$	1,380
Short-term lease cost		6		7		12		34
Variable lease cost		—		—		—		—
Total lease cost	$	441	$	728	$	875	$	1,414

Amounts reported in the Condensed Consolidated Balance Sheets were as follows:


($ in thousands)	June 30, 2024			December 31, 2023
Operating leases:
ROU assets	$	5,653		$	8,023
Lease liability, current		1,109			1,629
Lease liability, long-term		5,169			7,247
Total lease liabilities	$	6,278		$	8,876

Weighted-average remaining lease term (in years)		4.1		4.3
Weighted-average discount rate (annualized)		6.2	%		5.8	%

Other information related to leases are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	548	$	667	$	1,098	$	1,341
ROU assets obtained in exchange for lease liabilities:
Operating leases		—		—		—		—

The following table presents a maturity analysis of the Company’s operating leases liabilities as of June 30, 2024:


($ in thousands)
2024	$	762
2025		1,390
2026		1,335
2027		924
2028		734
Thereafter		2,808
Total undiscounted lease payments		7,953
Less: Imputed interest		1,675
Total lease liabilities	$	6,278