XML 24 R13.htm IDEA: XBRL DOCUMENT v3.24.0.1
Leases
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases

NOTE 5 LEASES

Leases - ASC 842

The Company leases its office facilities and office equipment which are accounted for as operating leases. Some leases contain clauses for renewal at the Company's option with renewal terms that generally extend the lease term from 1 to 7 years.

The components of lease expense for the Company's operating leases in its consolidated statements of operations and comprehensive loss were as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Operating lease costs

 

$

56,677

 

 

$

54,217

 

Variable lease costs and short-term lease costs were not material.

The weighted-average remaining lease term and discount rate for operating lease liabilities included in the consolidated balance sheets are as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

Weighted-average remaining lease term (in years)

 

 

4.6

 

 

 

5.3

 

Weighted-average discount rate

 

 

7.11

%

 

 

6.47

%

Supplemental cash flow information related to operating leases was as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

63,363

 

 

$

53,371

 

Noncash lease activity

 

 

 

 

 

 

Right-of-use lease assets obtained in exchange for new operating lease liabilities

 

$

16,020

 

 

$

47,837

 

 

The future minimum lease payments under noncancellable operating leases as of December 31, 2023 are as follows:

Year Ended December 31,

 

Amount

 

2024

 

$

60,879

 

2025

 

 

61,735

 

2026

 

 

54,261

 

2027

 

 

40,856

 

2028

 

 

28,703

 

Thereafter

 

 

23,085

 

Total lease payments

 

$

269,519

 

Less: imputed interest

 

 

(41,687

)

Total lease liabilities

 

$

227,832

 

Related party lease transactions were not material as of and for the year ended December 31, 2023. The Company incurred $1,565 in related-party lease expense in its consolidated statements of operations and comprehensive loss for the year ended December 31, 2022. The Company had $5,058 in right-of-use assets, $1,324 in operating lease liabilities, current, and $3,902 in operating lease liabilities, noncurrent, with related parties as of December 31, 2022.

Real Estate Optimization and Restructuring Charges

In 2023, the Company announced a strategic re-focus, to prioritize resources and close certain centers as a direct result of changes to the Company's business model driven by a shift to more virtual visits initiated by the COVID-19 pandemic. During the year ended December 31, 2023, the Company substantially completed a significant reduction in physical space and exited several underoccupied offices by both negotiating terminations of and abandoning certain real estate leases. The Company accounts for real estate optimization restructuring charges in accordance with ASC 420, Exit or Disposal Cost Obligations and ASC 360-10, Property, Plant, and Equipment. The costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

During the year ended December 31, 2023, the Company recorded $10,970 of office space reductions, including primarily of $4,734 of right-of-use asset impairment, $4,618 of property and equipment disposal and impairment costs, and $2,419 of gains related to early lease terminations. The portion of these amounts to be settled by cash disbursements was accounted for as an exit cost liability within other current liabilities and other noncurrent liabilities within the consolidated balance sheets and are not material as of December 31, 2023.

Leases - ASC 840

Prior to the adoption of ASC 842 as of January 1, 2022, the Company accounted for its operating lease arrangements under ASC 840 with no right-of-use assets or lease liabilities being reflected on the consolidated balance sheets. Total rent expense amounted to as follows in the consolidated statements of operations and comprehensive loss:

 

 

Year Ended
December 31, 2021

 

Related-party rent expense

 

$

2,763

 

Third-party rent expense

 

 

32,630

 

Total lease cost

 

$

35,393