Leases

9 Months Ended

Sep. 30, 2024

In September 2019, the Company’s sublease agreement for the 25,212 square foot office in its corporate headquarters commenced in New York, NY and is scheduled to expire in May 2029. Pursuant to the sublease, the Company is obligated to pay the base rent of approximately $1.3 million per annum through the end of the fifth lease year and approximately $1.4 million per annum thereafter through the expiration date.

In February 2023, the Company's lease agreement for the additional 24,099 square foot office in its corporate offices commenced in New York, NY and is expected to expire in the fourth quarter of 2035. In accordance with ASC 842, the Company recorded right-of-use assets and lease liabilities of $12.2 million and $12.1 million, respectively. Pursuant to the lease, the Company is obligated to pay the base rent of approximately $1.4 million per annum through the end of the fifth lease year and approximately $1.5 million per annum thereafter through the expiration date.

The Company recognizes lease expense on a straight-line basis over the lease term. Lease expense for the three months ended September 30, 2024 and 2023 was $0.7 million. For the nine months ended September 30, 2024 and 2023, lease expense was $2.0 million and $1.7 million, respectively.

Cash outflows from operating activities attributable to the operating leases for the nine months ended September 30, 2024 and 2023 was $1.6 million and $1.0 million, respectively.

Information related to the Company's leases is as follows (in thousands):


	Balance Sheet Location	September 30, 2024		December 31, 2023
Operating Leases
Right-of-use asset	Operating lease right-of-use assets	$	17,439	$	17,605
Short-term lease liabilities	Accrued expenses and other current liabilities	$	2,872	$	2,149
Long-term lease liabilities	Operating lease noncurrent liabilities	$	16,625	$	17,241

Other information
Weighted-average remaining lease term, operating lease		8.8 years		9.6 years
Weighted-average discount rate, operating lease		4.60%		4.60%

Future minimum facility lease payments related to the Company's operating lease liabilities as of September 30, 2024 were as follows (in thousands):


Year Ending December 31:	Operating Lease Payments as of September 30, 2024
2024	$	752
2025	3,009
2026	3,013
2027	3,018
2028	3,023
Thereafter	11,024
Total undiscounted lease payments	$	23,839
Less: imputed interest	4,342
Present value of lease liabilities	$	19,497
Less: current portion of operating lease liabilities	2,872
Operating lease noncurrent liabilities	$	16,625

February 2022 Lease Agreement

As noted above, the Company commenced its lease for the 24,099 square foot office in its corporate offices in New York, NY in February 2023, pursuant to a lease agreement entered into by the Company in February 2022. The lease agreement also provides for additional space in the Company's corporate offices, including an additional 21,262 square foot office and continued occupancy of the 25,212 square foot office after the expiration of the current sublease. For the 21,262 square foot office, the lease commencement date, which is when the premises will become available to the Company for use, is currently expected to be in the fourth quarter of 2024. The Company is obligated to pay the base rent of approximately $1.3 million starting in the fourth quarter of 2025 for five years and approximately $1.4 million per year thereafter through the fourth quarter of 2035, the expected expiration date. For the current 25,212 square foot office, the Company is obligated to pay the base rent of approximately $1.6 million per year beginning in June 2029, which is the lease commencement, through the fourth quarter of 2035, the expected expiration date.