LEASES

6 Months Ended

Jun. 30, 2024

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. In March 2024, the Company amended its existing operating leases for office space in Plymouth Meeting to extend their terms through June 2025. 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 $622 and $444 for the three months ended June 30, 2024, and 2023, respectively and $1,131 and $822 for the six months ended June 30, 2024, and 2023, respectively.

As of June 30, 2024, the weighted-average remaining lease term for operating leases was 1.7 years and the weighted-average discount rate for operating leases was 7.56%.

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

Leases	Classification		June 30, 2024		December 31, 2023
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,508	$	2,344
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,786	$	1,437
Operating lease liability, long-term	Other long-term liabilities		854		1,082
Total operating lease liabilities		$	2,640	$	2,519

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

		June 30, 2024		June 30, 2023
Operating cash flows from operating leases	$	1,075	$	922
Right of use assets obtained in exchange for operating lease obligations	$	1,254	$	615

Future payments under noncancelable operating leases with initial terms of one year or more as of June 30, 2024, consisted of the following:

Years ending December 31,
2024 (excluding the six months ended June 30, 2024)	$	1,047
2025		1,250
2026		495
2027		12
2028		—
Thereafter		—
Total lease payments		2,804
Less: imputed interest		(164)
Total lease liabilities	$	2,640