Leases

3 Months Ended

Mar. 31, 2024

The Company leases real estate for office space under operating leases.

As of March 31, 2024, the remaining lease terms varied from 0.5 years to 5.3 years. For certain leases, the Company has an option to extend the lease term for a period of 5 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 March 31,
	2024		2023
Operating lease expense	$	783	$	959
Variable lease expense	104		249
Total operating lease expenses (1)	$	887	$	1,208

Sublease income (2)	$	95	$	226

(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 March 31, 2024 and December 31, 2023, the weighted-average remaining lease term was 4.4 and 1.9 years, respectively. As of March 31, 2024 and December 31, 2023, the weighted-average discount rate was 7.1% and 7.0%, respectively.

The Company entered into a new office lease which commenced on March 8, 2024, and recorded a right-of-use asset and liability of $4.5 million. During the three months ended March 31, 2024, it was determined that office space under an existing lease would no longer be used and the associated right-of-use asset was reduced to $0 and an impairment of $0.2 million was recognized in rent and occupancy expense in the condensed consolidated statement of operations. There were no right-of-use impairments recognized during the three months ended March 31, 2023.

Future undiscounted lease payments under operating leases as of March 31, 2024, were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation
Remaining 2024	$	2,855	$	(270)	$	2,585
2025	3,867		(210)		3,657
2026	1,087		—		1,087
2027	1,120		—		1,120
2028	1,153		—		1,153
2029	790		—		790
Total undiscounted lease payments	$	10,872	$	(480)	$	10,392
Less: imputed interest	(1,697)
Present value of future lease payments	9,175
Less: operating lease liabilities, current	2,922
Operating lease liabilities, noncurrent	$	6,253

As of March 31, 2024, the Company did not have any lease contracts that had not yet commenced.