Leases

6 Months Ended

Jun. 30, 2024

The Company leases office space and equipment. The Company 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 June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024, and 2023, operating lease costs were $0.8 million and $0.8 million, respectively.

During the six months ended June 30, 2024, the Company recognized noncash increases for the right-of-use asset obtained in exchange for new operating lease liabilities due to a lease renewal and entry into a new lease in the amount of $1.0 million. There were no such transactions during the six months ended June 30, 2023. The maturity of operating lease liabilities is presented in the following table (unaudited, in thousands):


	As of June 30, 2024

2024	$	748
2025	1,436
2026	943
2027	375

2028	61
Total lease payments	$	3,563
Less imputed interest	(328)
Present value of lease liabilities	$	3,235

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


	As of June 30, 2024

Weighted average remaining lease term (years)	2.41
Weighted average discount rate	7.4	%