Leases

6 Months Ended

Jun. 30, 2024

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

As of June 30, 2024, the remaining lease terms varied from 0.25 to 5.1 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease expense	$	923	$	834	$	1,706	$	1,792
Variable lease expense	97		223		201		472
Total operating lease expenses (1)	$	1,020	$	1,057	$	1,907	$	2,264

Sublease income (2)	$	95	$	226	$	191	$	452

(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 June 30, 2024 and December 31, 2023, the weighted-average remaining lease term was 4.3 and 1.9 years, respectively. As of June 30, 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 six months ended June 30, 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 unaudited condensed consolidated statements of operations. There were no right-of-use impairments recognized during the three and six months ended June 30, 2023.

Future undiscounted lease payments under operating leases as of June 30, 2024, were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation
Remaining 2024	$	1,817	$	(180)	$	1,637
2025	3,864		(210)		3,654
2026	1,084		—		1,084
2027	1,117		—		1,117
2028	1,150		—		1,150
2029	888		—		888
Total undiscounted lease payments	$	9,920	$	(390)	$	9,530
Less: imputed interest	(1,237)
Present value of future lease payments	8,683
Less: operating lease liabilities, current	3,357
Operating lease liabilities, noncurrent	$	5,326

As of June 30, 2024, the Company did not have any lease contracts that had not yet commenced.