Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

5. Leases

The Company has a real estate lease for the use of office space.

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

	Nine Months Ended September 30,
	2024			2023
Operating lease costs during the period (1)	$	308		$	758
Cash payments included in the measurement of operating lease liabilities during the period	$	916		$	362
Operating lease liability arising from obtaining lease right-of-use assets during the period	$	2,583		$	-
Weighted-average remaining lease term (in years) as of period-end		6.17			1.01
Weighted-average discount rate during the period		10.85	%		9.90	%

⁽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 September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Operating lease costs:
General and administrative	$	150		$	259		$	682		$	922
Total operating lease costs (1)		150			259			682			922
Sublease income		(125	)		(55	)		(374	)		(164	)
	$	25		$	204		$	308		$	758

⁽¹⁾ Includes certain costs associated with an expired business membership agreement that permitted access to certain office space for the three and nine months ended September 30, 2024 of $155 and $465, respectively, and month-to-month lease arrangements for the three and nine months ended September 30, 2024 of $96 and $266, respectively.

Maturities of the operating lease liabilities as of September 30, 2024 are summarized as follows:

Years Ending December 31,
2024 (remaining three months of the year)	$	-
2025		-
2026		652
2027		652
2028		652
Thereafter		1,249
Minimum lease payments		3,205
Less imputed interest		(1,047	)
Present value of operating lease liabilities	$	2,158
Current portion of operating lease liabilities	$	247
Long term portion of operating lease liabilities		1,911
Total operating lease liabilities	$	2,158

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 September 30, 2024, the Company is entitled to receive total sublease income of $288 (of which $265 will offset an assumed liability).

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. During the three months ended September 30, 2024, the Company made the final cash payment of $4,000. As of September 30, 2024, $246 of credits for market rate advertising remains to be delivered, and is reflected as a lease termination liability in accrued expenses and other on the condensed consolidated balance sheets.