Leases

3 Months Ended

Mar. 31, 2024

The Company leases office space and equipment. 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 costs were $0.4 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

During the three months ended March 31, 2024, the Company recognized a noncash increase for the right-of-use asset obtained in exchange for the new operating lease liability due to a lease renewal in the amount of $1.0 million. There were no such transactions during the three months ended March 31, 2023. The maturity of operating lease liabilities is presented in the following table (unaudited, in thousands):


	As of March 31, 2024

2024	$	1,149
2025	1,399
2026	906
2027	359

2028	61
Total lease payments	3,874
Less imputed interest	374
Present value of lease liabilities	$	3,500

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


	As of March 31, 2024

Weighted average remaining lease term (years)	2.62
Weighted average discount rate	7.3	%