Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

The Company has various noncancelable operating leases for its offices. These existing leases have remaining lease terms ranging from 1 to 7 years. Certain lease agreements contain renewal options, termination rights, rent abatement and/or escalation clauses with renewal terms that can extend the lease term from 2 to 10 years.

The Company signed an operating lease on March 2, 2020 with a term of 128 months commencing on August 29, 2020. The Company had the option to terminate a portion of the leased building (“Partial Premises”) on the last day of the 12th month of the lease term for a fee. The Company was reasonably certain it would exercise the Partial Premises termination option at lease commencement and subsequently exercised this termination option.

The Company cannot determine with reasonable certainty that any other options will be exercised and therefore only the Partial Premises termination option is considered when recording the Company’s operating lease ROU assets, operating lease liabilities or lease expense.

The components of lease cost related to the Company’s operating leases are as follows (in thousands):

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	4,933	$	5,502	$	6,816
Short-term lease cost	189		391		7
Variable lease cost	1,533		1,497		1,203
Sublease income	(507)		(597)		(151)
Net lease cost	$	6,148	$	6,793	$	7,875

The Company made cash payments for amounts included in the measurement of operating lease liabilities of $6.9 million, $7.6 million, and $4.3 million, for the years ended December 31, 2023, 2022, and 2021, respectively. Such amounts are presented net of tenant improvement allowances received of $0.1 million and $3.9 million for the years ended December 31, 2022, and 2021, respectively. For the year ended December 31, 2023, no tenant improvement allowances were received.

Supplemental information related to the Company’s operating leases is as follows:

	December 31,
	2023		2022		2021
Weighted-average remaining lease term	5.0 years		5.2 years		5.4 years
Weighted-average incremental borrowing rate	5.1	%	5.0	%	5.1	%

Future undiscounted lease payments for the Company’s operating lease liabilities and a reconciliation of these payments to its operating lease liabilities as of December 31, 2023 are as follows (in thousands):

2024	$	4,976
2025	2,921
2026	1,228
2027	1,260
2028	1,293
Thereafter	3,140
Total lease payments	14,818
Less: imputed interest	(1,668)
Present value of operating lease liabilities	$	13,150