Leases

3 Months Ended

Mar. 31, 2024

The Company has operating leases consisting of office space, vehicle leases, computer equipment, and office equipment. Lease terms and options vary in the Company's operating leases dependent upon the underlying leased asset. We exclude options to extend or terminate a lease from our recognition as part of our right-of-use assets and lease liabilities until those options are known and/or executed, as we typically do not exercise options to purchase the underlying leased asset. As of March 31, 2024, we have leases with remaining terms of one year to seven years, some of which may include no options for renewal and others with options to extend the lease terms from six months to five years.

The Company has six lease agreements under which the Company serves as the lessor. The properties are used for office space and parking. The terms of the leases vary depending on the property and range from two years to nine years, which may include options for renewal or to extend lease terms. The Company has elected to categorize these leases into four categories based on length of lease terms and applies an incremental borrowing rate.

The components of our operating leases were as follows for the three-month periods ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023

Components of lease expense:
Operating lease expense	$	2,400	$	2,188
Less lessor income	145		133
Less sublease income	133		34
Net lease expense	2,122		2,021
Cash flows information related to leases:
Operating cash outflow from operating leases	2,103		2,052

There have been no allowances for credit losses recorded or write-offs against our receivables related to our lessor agreements because, due to the nature of the operating leases and history of collectability, there is no expectation of credit quality concerns.