Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

8. Leases

The Company leases facilities and certain equipment under agreements classified as operating leases, which expire at various dates through June 2028. Substantially all of the property leases provide for increases based upon use of utilities and landlord’s operating expenses as well as pre-defined rent escalations. Total operating lease expense from continuing operations under these agreements for the years ended December 31, 2023 and 2022 was approximately $0.8 million and $0.9 million, respectively. Total cash paid under these agreements for the years ended December 31, 2023 and 2022 was approximately $0.8 million and $0.9 million, respectively.

The table below presents the lease-related assets and liabilities recorded in the Consolidated Balance Sheet:

	Classification on the Balance Sheet	December 31, 2023		December 31, 2022
Assets
Operating lease assets	Operating lease right of use assets		1,864		2,439
Total lease assets		$	1,864	$	2,439
Liabilities
Current
Operating lease liabilities	Other accrued expenses		377		578
Total current lease liabilities		$	377	$	578
Noncurrent
Operating lease liabilities	Operating lease liabilities, net of current portion		1,472		1,848
Total long-term lease liabilities			1,472		1,848
Total lease liabilities		$	1,849	$	2,426

The weighted average remaining lease term for the Company’s operating leases was 4.3 years as of December 31, 2023 and 5.0 years as of December 31, 2022 and the weighted average discount rate for those leases was 11.8% and 11.7% as of December 31, 2023 and December 31, 2022, respectively. The Company’s operating lease expenses are recorded within “Cost of revenue” and “General and administrative expenses.”

The table below reconciles the undiscounted cash flows to the lease liabilities recorded on the Company’s Consolidated Balance Sheet as of December 31, 2023:

	Operating Leases
2024	$	575
2025		450
2026		550
2027-2028		825
Total minimum lease payments		2,400
Less: amount of lease payments representing effects of discounting		551
Present value of future minimum lease payments		1,849
Less: current obligations under leases		377
Long-term lease obligations	$	1,472