Leases

12 Months Ended

Dec. 31, 2023

The Company leases real estate for office space under operating leases.

As of December 31, 2023, the remaining lease terms varied from 0.75 years to 2.00 years. For one of its leases, the Company has an option to extend the lease term for a period of 3 years. This renewal option is not considered in the remaining lease term because it is not reasonably certain that the Company will exercise such option.

Operating lease expense, included in rent and occupancy in the consolidated statements of operations, were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Operating lease expense	$	3,651	$	4,182	$	3,023
Variable lease expense	924		598		489
Total operating lease expenses (1)	$	4,575	$	4,780	$	3,512

Sublease income (2)	$	784	$	689	$	175

(1) Operating lease expense is included in rent and occupancy in the consolidated statements of operations.

(2) Sublease income is included in other income (expenses), net in the consolidated statements of operations.

The table below presents additional information related to the Company’s operating leases (in thousands):


	As of December 31,
	2023			2022
Operating lease right-of-use assets	$	4,308		$	5,706
Operating lease liabilities, current	$	2,516		$	3,896
Operating lease liabilities, noncurrent	$	2,707		$	3,541
Weighted-average remaining lease term (in years)	1.9			2.6
Weighted-average discount rate	7.0		%	6.0		%

Future undiscounted lease payments under operating leases as of December 31, 2023 were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation
2024	$	2,810	$	(360)	$	2,450
2025	2,811		(210)		2,601
Total undiscounted lease payments	$	5,621	$	(570)	$	5,051
Less: imputed interest	(398)
Present value of future lease payments	5,223
Less: operating lease liabilities, current	2,516
Operating lease liabilities, noncurrent	$	2,707

As of December 31, 2023, the Company has entered into a lease which has not yet commenced and is therefore not part of the right-of-use asset and liability. This lease has undiscounted future payments of $5.5 million and will commence when the Company obtains possession of the underlying leased asset. Commencement date for this lease is March 8, 2024.

During the year ended December 31, 2022, the Company ceased using one of its leased office spaces and made a decision to sublease this space to a third party. The sublease agreement was signed in April 2022. Based on the terms of the sublease agreement, the Company determined that the right-of-use asset related to this office space was impaired, and recorded an impairment loss of $0.3 million for the year ended December 31, 2022 in rent and occupancy in the consolidated statements of operations.