Leases

9 Months Ended

Sep. 30, 2023

The Company leases real estate for office space under operating leases. As of September 30, 2023, the remaining lease terms varied from 0.25 years to 2.3 years.For certain leases, the Company has an option to extend the lease term for a period of 3 years This renewal option is not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.

Operating lease expense, included in rent and occupancy in the unaudited condensed consolidated statements of operations, were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease expense	$	855	$	853	$	2,655	$	2,818
Variable lease expense	$	231	$	222	$	704	$	625
Total operating lease expenses (1)	$	1,086	$	1,075	$	3,359	$	3,443

Sublease income (2)	$	226	$	226	$	678	$	463

(1) Operating lease expense is included in rent and occupancy in the unaudited condensed consolidated statements of operations.

(2) Sublease income is included in other income (expenses), net in the unaudited condensed consolidated statements of operations.

As of September 30, 2023 and December 31, 2022, the weighted-average remaining lease term was 2.1 and 2.6 years, respectively. As of September 30, 2023 and December 31, 2022, the weighted-average discount rate was 6.2% and 6.0% respectively.

Future undiscounted lease payments under operating leases as of September 30, 2023 were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation
Remainder of 2023	$	1,658	$	(316)	$	1,342
2024	2,134		(360)		1,774
2025	1,619		(210)		1,409
2026	—		—		—
2027	—		—		—
Thereafter	$	—	$	—	$	—
Total undiscounted lease payments	$	5,411	$	(886)	$	4,525
Less: imputed interest	(1,109)
Present value of future lease payments	4,302
Less: operating lease liabilities, current	2,300
Operating lease liabilities, noncurrent	$	2,002

As of September 30, 2023, the Company had entered into two additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases have undiscounted future payments of $7.3 million and will commence when the Company obtains possession of the underlying leased asset. One of the leases commenced on October 3, 2023. Commencement date for the second lease is expected to be in fiscal 2024.

During the nine months ended September 30, 2022, the Company ceased using one of its leased office spaces and made a decision to sublease this space to a third party. The sublease agreement was signed in April 2022. Based on the terms of the sublease agreement, the Company determined that the right-of-use asset related to this office space is impaired, and recorded an impairment loss of $0.3 million for the nine months ended September 30, 2022 in rent and occupancy in the unaudited condensed consolidated statements of operations. There was no impairment loss for leases for the nine months ended September 30, 2023.