Leases

9 Months Ended

Sep. 30, 2024

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

As of September 30, 2024, the remaining lease terms varied from 0.8 years to 5.0 years. For certain leases, the Company has an option to extend the lease term for periods of up to 5 years. This renewal option is not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease expense	$	898	$	855	$	2,604	$	2,655
Variable lease expense	96		231		298		704
Total operating lease expenses (1)	$	994	$	1,086	$	2,902	$	3,359

Sublease income (2)	$	95	$	226	$	286	$	678

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

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

As of September 30, 2024 and December 31, 2023, the weighted-average remaining lease term was 4.4 and 1.9 years, respectively. As of September 30, 2024 and December 31, 2023, the weighted-average discount rate was 7.2% and 7.0%, respectively.

The Company entered into a new office lease which commenced on March 8, 2024, and recorded a right-of-use asset and liability of $4.5 million. During the nine months ended September 30, 2024, it was determined that office space under an existing lease would no longer be used and the associated right-of-use asset was fully impaired, resulting in an impairment of $0.2 million which was recognized in rent and occupancy expense in the unaudited condensed consolidated statements of operations. There were no right-of-use impairments recognized during the three and nine months ended September 30, 2023.

Future undiscounted lease payments under operating leases as of September 30, 2024, were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation
Remaining 2024	$	927	$	(90)	$	837
2025	3,864		(210)		3,654
2026	1,084		—		1,084
2027	1,117		—		1,117
2028	1,150		—		1,150
2029	888		—		888
Total undiscounted lease payments	$	9,030	$	(300)	$	8,730
Less: imputed interest	(1,085)
Present value of future lease payments	7,945
Less: operating lease liabilities, current	3,453
Operating lease liabilities, noncurrent	$	4,492

As of September 30, 2024, the Company did not have any lease contracts that had not yet commenced.