Leases

3 Months Ended

Mar. 31, 2024

A major part of the Company’s lease obligations is for office real estate. The Company may also lease corporate apartments, cars and office equipment. Payments on some of our leases may depend on index or rate, including Consumer Price Index. Such payments are included in the calculation of lease liability and assets at the commencement dates, all future changes are accounted as variable payments similar to other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost.

The Company’s leases have remaining lease terms ranging from 0.1 to 6.2 years. Certain lease agreements may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancellable only by the payment of penalties. The Company includes these options in the lease term when it is reasonably certain that they will be exercised.

As of March 31, 2024 and December 31, 2023, the Company had no finance leases.

Operating lease expense is recorded on a straight-line basis over the lease term. During the three months ended March 31, 2024 and 2023 lease costs were as follows:


	Three Months Ended March 31,
	2024		2023
	(in thousands)
Operating lease cost	$	1,193	$	781
Variable lease cost	76		194
Short-term lease cost	54		98
Total lease cost	$	1,323	$	1,073

Supplemental information related to operating lease transactions is as follows:


	Three Months Ended March 31,
	2024		2023
	(in thousands)
Lease liability payments	$	1,168	$	727
Lease assets obtained in exchange for liabilities	$	853	$	1,022
Non-cash net change in lease assets due to lease modifications	$	40	$	—
Non-cash net change in lease liability due to lease modifications	$	(40)	$	—

Weighted average remaining lease term and discount rate as of March 31, 2024 and December 31, 2023 is as follows:


	As of
	March 31, 2024		December 31, 2023
Weighted average remaining lease term, in years	3.2		3.4
Weighted average discount rate	7.2	%	7.0	%

As of March 31, 2024, operating lease liabilities will mature as follows:


	Lease Payments
	(in thousands)
2024 (excluding three months ended March 31, 2024)	$	3,461
2025	3,700
2026	2,331
2027	2,015
2028	285
Thereafter	268
Total lease payments	12,060
Less: imputed interest	(1,403)
Total	$	10,657

There were no material lease agreements signed with related parties as of March 31, 2024 and December 31, 2023.

As of March 31, 2024, the Company had committed to payments of $0.4 million related to operating lease agreement that had not yet commenced as of March 31, 2024. This operating lease will commence in 2024 with the lease term of 6.2 years. The Company does not have finance lease agreements that had not yet commenced.