Note 11 - Leases

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

11. Leases

The Company is obligated under various non-cancelable operating leases primarily for office space. The initial terms of the leases expire on various dates through 2030. We determine if an arrangement is a lease at inception.

The components of the Company’s operating lease expenses are reflected in the consolidated statements of operations as follows:

	Year Ended December 31,
	2024		2023		2022
	(in thousands)
Lease liability cost	$	7,105	$	6,978	$	5,945
Short-term lease expenses (1)		1,271		777		1,760
Variable lease cost not included in the lease liability (2)		619		477		261
Total lease cost	$	8,995	$	8,232	$	7,966

⁽¹⁾ Short-term lease expenses include rent expenses from leases of 12 months or less on the transition date or lease commencement.

⁽²⁾ Variable lease cost includes common area maintenance, property taxes, and fluctuations in rent due to a change in an index or rate.

During the year ended  December 31, 2024 and 2023, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $8.7 million and $4.3 million, respectively.

Other information related to operating leases is as follows:

	Year Ended December 31,
	2024		2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of the lease liability:
Operating cash flows from operating leases	$	7,095	$	7,190	$	5,626

As of  December 31, 2024 and 2023, our operating leases had weighted average remaining lease terms of 3.3 years and 3.8 years, respectively, and weighted average discount rates of 5.2% and 5.6%, respectively.

The maturity schedule of the operating lease liabilities as of  December 31, 2024, is as follows:

Year Ending December 31:
	(in thousands)
2025	$	7,310
2026		4,853
2027		3,022
2028		1,388
2029		893
Thereafter		525
Total future lease payments		17,991
Less: Present value adjustment		(1,458	)
Present value of future lease payments (1)	$	16,533

⁽¹⁾ Includes the current portion of operating lease liabilities of $6.6 million, which is reflected in accrued expenses and other current liabilities in the consolidated balance sheets.

As of December 31, 2024, letters of credit have been issued in the amount of $1.0 million as security for operating leases. The letters of credit are secured by certificates of deposit and a line of credit. The certificates of deposit are included in cash and cash equivalents and short-term investments within the consolidated balance sheets.