Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lessee, Operating Leases

Leases

The Company enters into lease agreements that are primarily for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. The Company occasionally assumes equipment lease agreements through business acquisitions. These leases are accounted for as finance leases.

A portion of the Company's current leases include an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The lease liability recorded in the Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determines at the inception date that the lease is expected to be renewed or extended. The Company, in determining the present value of lease payments, utilizes the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest are not readily determinable in the lease contracts. The Company does not carry debt; thus no incremental borrowing rate is available to the Company.

Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s leases for the years ended December 31 is as follows:

(in thousands)	2022		2021
Operating leases	$	2,518	$	1,376
Finance leases:
Amortization of lease assets	168		—
Interest on lease liabilities	24		—
Short-term leases (a)	214		323
Lease expense	$	2,924	$	1,699
Sub-lease income	—		—
Lease cost	$	2,924	$	1,699

(a) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.

Components of the lease liability presented on the Consolidated Balance Sheets for the years ended December 31 are as follows:

(in thousands)	2022		2021
Current:
Operating lease liabilities	$	1,693	$	1,547
Finance lease liabilities	218		—
Non-current:
Operating lease liabilities	4,401		3,782
Finance lease liabilities	527		—
Total lease liabilities	$	6,839	$	5,329

The future minimum payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2022, are summarized as follows:

Year Ended (in thousands)	Operating Leases		Finance Leases		Total
2023	$	1,904	$	242	$	2,146
2024	1,993		201		2,194
2025	1,424		171		1,595
2026	893		134		1,027
2027	266		51		317
Thereafter	50		—		50
Total undiscounted payments	$	6,530	$	799	$	7,329
Less: present value adjustment	(436)		(54)		(490)
Lease liabilities	$	6,094	$	745	$	6,839

Supplemental lease information for the years ended December 31 is as follows:

	2022		2021
Weighted average remaining lease term (years)
Operating Leases	3.43		4.13
Finance Leases	3.80		0.00
Weighted average discount rate
Operating Leases	3.9	%	4.2	%
Finance Leases	3.7	%	—	%

The Company does not have any material pending operating or financing lease agreements that become effective in future periods.