LEASES

6 Months Ended

Jun. 30, 2024

LEASES

LEASES

16. LEASES

Lessee

At June 30, 2024, the Company recorded $22.5 million as a right of use asset and $28.3 million as a lease liability. At December 31, 2023, the Company recorded $29.7 million as a right of use asset and $31.0 million as a lease liability. The Company assesses its right of use asset and other lease-related assets for impairment. There were no impairments recorded related to these assets during the three and six months ended June 30, 2024 and the year ended December 31, 2023. The right of use asset is included in Other noncurrent assets in the condensed consolidated balance sheets.

The Company reviews all supplier, vendor, and service provider contracts to determine whether any service arrangements contain a lease component. The Company identified two service agreements that contain an embedded lease. The agreements do not contain fixed or minimum payments, and the variable lease expense was immaterial during the three and six months ended June 30, 2024 and 2023.

Information about other lease-related balances is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Lease cost
Operating lease cost	$	7,695		$	1,570		$	10,025		$	3,071
Short‑term lease cost		—			39			86			94
Variable lease cost		—			36			21			70
Finance lease cost		26			23			53			46
Total lease cost	$	7,721		$	1,668		$	10,185		$	3,281
Other Information
Operating cash flows used in operating leases	$	2,365		$	1,741		$	4,737		$	3,471
Operating cash flows used in finance leases		23			21			47			42
Weighted‑average remaining lease term—operating leases (years)		3.9			5.1			3.9			5.1
Weighted‑average remaining lease term—finance leases (years)		5.8			6.8			5.8			6.8
Weighted‑average discount rate—operating leases		6.2	%		5.0	%		6.2	%		5.0	%
Weighted‑average discount rate—finance leases		3.1	%		3.1	%		3.1	%		3.1	%

The rate implicit in the lease is not readily determinable in most of the Company’s leases, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Future minimum lease payments under noncancelable operating leases, including immaterial future minimum lease payments under finance leases, at June 30, 2024, are as follows (in thousands):

	Operating Leases		Finance Leases
2024 (remaining 6 months)	$	4,668	$	38
2025		9,027		76
2026		7,237		76
2027		5,168		76
2028		3,388		76
2029 and after		1,694		236
Total lease payments		31,182		578
Less amount representing interest		(3,422)		(60)
Total lease liability		27,760		518
Less current portion of lease liability		(7,695)		(61)
Lease liability, net of current portion	$	20,065	$	457

In June 2023, the Company amended its existing facility lease for the headquarters and operating facility in Burlington, MA, extending the lease term set to expire in April 2024 through April 2029. The rent is not fixed and increases each year of the lease extension.