LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

    As of December 31, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company amended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In conjunction with the amendment of the Lake Forest Lease on May 1, 2023, the Company recognized an increase to both operating right-of-use asset and noncurrent operating lease liability of approximately $1.3 million, which was calculated using a discount rate of 7.41%.

In connection with the Spectrum Merger, the Company assumed leases for two facilities and certain office equipment which Spectrum had previously been the lessee. Refer to Note 13, Restructuring Charges, for further detail on the accounting for the leases assumed in the Spectrum Merger. As of December 31, 2023, the value of the operating right-of-use assets associated with these leases is zero, and the value of the current and noncurrent lease liabilities associated with these leases was $0.8 million and $0.3 million, respectively.

The following table reflects lease expense and sublease income for the years ended December 31, 2023 and 2022 (in thousands):

		Year ended December 31,
	Financial Statement Classification	2023		2022
Operating lease cost	Selling, general and administrative expenses	$	229	$	158
Operating lease cost	Other gain (loss)	—		541
Total lease cost		$	229	$	699
Sublease income	Other gain (loss)	$	—	$	1,223

The following table reflects supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 (in thousands):

	Year ended December 31,
	2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases	$	717	$	1,983

The following table reflects supplemental balance sheet information related to leases as of December 31, 2023 and 2022 (in thousands):

		December 31,
	Financial Statement Classification	2023		2022
Assets
Operating lease right-of-use assets	Other long-term assets	$	1,269	$	137
Liabilities
Current operating lease liabilities	Other current liabilities	$	928	$	401
Noncurrent operating lease liabilities	Other long-term liabilities	1,470		—
Total lease liabilities		$	2,398	$	401

    The following table reflects other lease information as of December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term (years):
Operating leases	4.6		1.0
Weighted-average discount rate:
Operating leases	5.7	%	11.1	%

    The following table reflects future minimum lease payments under the Company’s non-cancelable operating leases as of December 31, 2023 (in thousands):

	Lease Payments
2024	$	1,074
2025	412
2026	307
2027	243
2028	253
Thereafter	537
Total lease payments	$	2,826
Less: Interest	428
Present value of lease liabilities	$	2,398

LEASES

LEASES

    As of December 31, 2023, the Company has a non-cancelable operating lease for its corporate office, which is located in Lake Forest, Illinois (the “Lake Forest Lease”). On May 1, 2023, the Company amended the Lake Forest Lease to reduce the size of leased premises and extend the term of the lease through December 31, 2030. In conjunction with the amendment of the Lake Forest Lease on May 1, 2023, the Company recognized an increase to both operating right-of-use asset and noncurrent operating lease liability of approximately $1.3 million, which was calculated using a discount rate of 7.41%.

In connection with the Spectrum Merger, the Company assumed leases for two facilities and certain office equipment which Spectrum had previously been the lessee. Refer to Note 13, Restructuring Charges, for further detail on the accounting for the leases assumed in the Spectrum Merger. As of December 31, 2023, the value of the operating right-of-use assets associated with these leases is zero, and the value of the current and noncurrent lease liabilities associated with these leases was $0.8 million and $0.3 million, respectively.

The following table reflects lease expense and sublease income for the years ended December 31, 2023 and 2022 (in thousands):

		Year ended December 31,
	Financial Statement Classification	2023		2022
Operating lease cost	Selling, general and administrative expenses	$	229	$	158
Operating lease cost	Other gain (loss)	—		541
Total lease cost		$	229	$	699
Sublease income	Other gain (loss)	$	—	$	1,223

The following table reflects supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 (in thousands):

	Year ended December 31,
	2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases	$	717	$	1,983

The following table reflects supplemental balance sheet information related to leases as of December 31, 2023 and 2022 (in thousands):

		December 31,
	Financial Statement Classification	2023		2022
Assets
Operating lease right-of-use assets	Other long-term assets	$	1,269	$	137
Liabilities
Current operating lease liabilities	Other current liabilities	$	928	$	401
Noncurrent operating lease liabilities	Other long-term liabilities	1,470		—
Total lease liabilities		$	2,398	$	401

    The following table reflects other lease information as of December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term (years):
Operating leases	4.6		1.0
Weighted-average discount rate:
Operating leases	5.7	%	11.1	%

    The following table reflects future minimum lease payments under the Company’s non-cancelable operating leases as of December 31, 2023 (in thousands):

	Lease Payments
2024	$	1,074
2025	412
2026	307
2027	243
2028	253
Thereafter	537
Total lease payments	$	2,826
Less: Interest	428
Present value of lease liabilities	$	2,398