Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

12. LEASES

In June 2018, the Company entered into an operating lease for approximately fifteen thousand square feet of office space in Plymouth Meeting, PA, which expires in May 2024. The Company subsequently entered into two separate operating leases for additional office space in Plymouth Meeting, PA, which include approximately thirteen thousand square feet and seven thousand square feet of additional office space, respectively, and expire in May 2024. The terms of the lease payments provide for rental payments on a monthly basis and on a graduated scale. The Company also leases a fleet of automobiles that are used by its sales representatives and are classified as operating leases.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 3 years, some of which may include the option to extend or terminate the leases.

The company recorded operating lease costs of $1,811 and $1,526 for the years ended December 31, 2023, and 2022, respectively.

As of December 31, 2023, the weighted-average remaining lease term for operating leases was 2.0 years and the weighted-average discount rate for operating leases was 6.73%.

Supplemental balance sheet information related to operating leases was as follows:

Leases	Classification		December 31, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,344	$	2,312
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,437	$	1,614
Operating lease liability, long-term	Other long-term liabilities		1,082		975
Total operating lease liabilities		$	2,519	$	2,589

Supplemental cash flow information related to operating leases was as follows:

		December 31, 2023		December 31, 2022
Operating cash flows from operating leases	$	2,016	$	1,716
Right of use assets obtained in exchange for operating lease obligations	$	2,163	$	485

Future payments under noncancelable operating leases with initial terms of one year or more as of December 31, 2023, consisted of the following:

Years ending December 31,
2024	$	1,550
2025		732
2026		425
2027		-
2028		-
Thereafter		-
Total lease payments		2,707
Less: imputed interest		(188)
Total lease liabilities	$	2,519