Leases

3 Months Ended

Mar. 31, 2024

Leases

Leases

5. Leases

The Company’s real estate lease for the use of office space is subleased (as further described below). The Company’s current operating lease has a remaining fixed payment term of 0.50 years.

The table below presents supplemental information related to the operating lease:

	Three Months Ended March 31,
	2024			2023
Operating lease costs during the period (1)	$	9		$	240
Cash payments included in the measurement of operating lease liabilities during the period	$	121		$	121
Weighted-average remaining lease term (in years) as of period-end		0.50			1.51
Weighted-average discount rate during the period		9.9	%		9.9	%

(1) Operating lease costs is presented net of sublease income that is not material.

The Company generally utilizes its incremental borrowing rate based on information available at the commencement of the lease in determining the present value of future payments since the implicit rate for the Company’s leases is not readily determinable.

Variable lease expense includes rental increases that are not fixed, such as those based on amounts paid to the lessor based on cost or consumption, such as maintenance and utilities.

The components of operating lease costs were as follows:

	Three Months Ended March 31,
	2024			2023
Operating lease costs:
General and administrative	$	134		$	295
Total operating lease costs (1)		134			295
Sublease income		(125	)		(55	)
	$	9		$	240

(1) Includes certain costs associated with a business membership agreement (see below) that permits access to certain office space for the three months ended March 31, 2024 and 2023 of $0 and $155, respectively, and month-to-month lease arrangements for the three months ended March 31, 2024 and 2023 of $0 and $76, respectively.

Maturities of the operating lease liability as of March 31, 2024 are summarized as follows:

Years Ending December 31,
2024 (remaining nine months of the year)	$	249
Minimum lease payments		249
Less imputed interest		(7	)
Present value of operating lease liability	$	242
Current portion of operating lease liability	$	242

Sublease Agreement – The Company has entered into agreements to sublease certain space that it does not occupy, through the duration of the lease terms, with one sublease through September 2024 and two other subleases (these operating leases were recorded as an assumed lease liability in connection with the acquisition of Men’s Journal) through March 2025. As of March 31, 2024, the Company is entitled to receive total sublease income of $423 (of which $265 were recorded as an assumed liability).

Business Membership – Effective October 1, 2021, the Company entered into a business membership agreement with York Factory LLC, doing business as SaksWorks, that permits access to certain office space with furnishings, referred to as SaksWorks Memberships. This membership provides a certain number of accounts that equate to the use of the space granted. Effective June 1, 2022, the SaksWorks membership agreement was amended and assigned to Convene SW MSA Holdings, LLC (“Convene”). The initial term of the agreement with Convene was through December 31, 2023, with provisions for renewals. The Company terminated the arrangement effective December 31, 2023.

Lease Termination – Effective September 30, 2021, the Company terminated a certain lease arrangement for office space. In connection with the termination, the Company agreed to pay the landlord cash payments and credits for market rate advertising. As of March 31, 2024, the Company has a remaining cash payment of $4,000 due on October 1, 2024 (reflected net of imputed interest recognized at 10.0% per annum) and market advertising to be delivered of $676, presented as a lease termination liability of $4,518, as reflected in accrued expenses and other on the condensed consolidated balance sheets.