Leases

12 Months Ended

Dec. 31, 2023

The Company leases office space and equipment, and certain office space was subleased during 2022. Management determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease cost consists of the following (in thousands):


	Year Ended December 31,
	2023		2022
Lease cost	$	1,674	$	1,654
Sublease income	—		(18)
Total lease cost	$	1,674	$	1,636

Operating lease assets and liabilities are summarized as follows (in thousands):


	Year Ended December 31,
	2023		2022
Right-of-use assets	$	2,759	$	3,722

Current lease liabilities	$	1,483	$	1,441
Long-term lease liabilities	1,780		2,976
Total lease liabilities	$	3,263	$	4,417

In the year ended December 31, 2023, the Company recognized a noncash increase for the right-of-use asset obtained in exchange for the new operating lease liability in the amount of $0.3 millions There were no such transactions in the year ended December 31, 2022.

The maturity of operating lease liabilities is presented in the following table (in thousands):


			As of December 31, 2023
2024			1,629
2025			1,272
2026			561

Total lease payments			3,462
Less imputed interest			199
Present value of lease liabilities			3,263

Additional information relating to the Company’s operating leases follows:


	As of December 31, 2023	As of December 31, 2022

Weighted average remaining lease term (years)	2.31	3.08
Weighted average discount rate	6.47%	6.22%