Leases

12 Months Ended

Dec. 31, 2024

A major part of the Company's lease obligations is for office real estate. The Company may also lease corporate apartments, cars, and office equipment. Payments on some of our leases may depend on index or rate, including Consumer Price Index.

Such payments are included in the calculation of lease liability and assets at the commencement dates, all future changes are accounted as variable payments similar to other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost.

The Company’s leases have remaining lease terms ranging from 0.2 to 5.4 years. Certain lease agreements may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancellable only by the payment of penalties. The Company includes these options in the lease term when it is reasonably certain that they will be exercised.

The Company had no finance leases as of each of December 31, 2024 and 2023. Operating lease expense is recorded on a straight-line basis over the lease term and lease costs were as follows:


	For the years ended December 31,
	2024		2023		2022
	(in thousands)
Operating lease cost	$	5,365	$	3,860	$	3,268
Variable lease cost	511		405		43
Short-term lease cost	551		343		513
Total lease cost	$	6,427	$	4,608	$	3,824

Supplemental information related to operating lease transactions is as follows:


	For the years ended December 31,
	2024		2023		2022
	(in thousands)
Lease liability payments	$	5,079	$	3,692	$	2,888
Lease right-of-use assets obtained in exchange for liabilities	$	6,938	$	5,005	$	4,468
Non-cash net decrease in lease assets due to lease modifications	$	98	$	553	$	(1,015)
Non-cash net decrease in lease liability due to lease modifications	$	(739)	$	(553)	$	1,015

Weighted average remaining lease term and discount rate as of December 31, 2024 and 2023 were as follows:


	As of December 31,
	2024		2023
Weighted average remaining lease term, in years	3.0		3.4
Weighted average discount rate	8.1	%	7.0	%

As of December 31, 2024, operating lease liabilities will mature as follows:


	Lease Payments
	(in thousands)
2025	5,447
2026	4,265
2027	2,982
2028	1,097
2029	452
Thereafter	113
Total lease payments	14,356
Less: imputed interest	(1,731)
Total	$	12,625

There were no material lease agreements signed with related parties as of December 31, 2024 and 2023. The Company does not have operating or finance lease agreements that had not yet commenced.