LEASES

6 Months Ended

Jun. 30, 2025

The Company has entered into various operating leases for its office space expiring between fiscal 2025 and 2036. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis.

In May 2025, the Company entered into an amendment (the “Third Amendment”) to the Office Lease Agreement with 5704 Penn Office, LLC (the "Landlord") for office space located at Liberty East (the “Premise) at 141 South Saint Clair Street, Pittsburgh, Pennsylvania. The Third Amendment grants the Company access to and control of the expansion space to begin tenant improvement work as of the effective date in May 2025.

As a result of obtaining control of the premises, the lease was recognized on the Company’s balance sheet in the second quarter of 2025 in accordance with ASC 842. $35,592 was recognized as a right-of-use-asset and $38,964 was recognized as a lease liability as part of the amendment on the Company’s Unaudited Condensed Consolidated. Under the terms of the Third Amendment, the Landlord provided the Company with a tenant improvement allowance for costs related to the design, permitting, and construction of improvements to the Premise. As of June 30, 2025, $6,809 related to this allowance was recognized within Unaudited Condensed Consolidated Balance Sheet within Other Assets. The full lease term extends through April 30, 2036, and includes approximately 148,266 square feet of leased space.

The following represents the components of lease cost for the three and six months ended June 30, 2025 and 2024 along with supplemental disclosures of cash flow information, lease term and discount rate:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease cost	$	2,742	$	2,706	$	4,888	$	5,696
Short term lease cost	84		14		120		22
Variable lease cost	128		105		246		252
Total lease cost	$	2,954	$	2,825	$	5,254	$	5,970

Cash paid for amounts included in the measurement of lease liabilities	$	1,138	$	1,606	$	2,184	$	3,645
Right-of-use assets obtained in exchange for new operating lease liabilities	$	36,025	$	1,681	$	36,025	$	33,039
Right of use assets disposed or adjusted, modifying operating leases liabilities	$	—	$	—	$	—	$	1,303
Gain from termination of leases	$	—	$	—	$	—	$	8


	June 30, 2025		June 30, 2024
Weighted-average remaining lease term	10 years		10 years
Weighted-average discount rate	6.94	%	7.14	%

Sublease income was immaterial for the three and six months ended June 30, 2025 and 2024.

The following table reconciles future minimum undiscounted rental commitments for operating leases to operating lease liabilities recorded on the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2025:


Fiscal year
2025	$	2,184
2026	12,169
2027	14,576
2028	14,606
2029	15,053
Thereafter	78,259
Total undiscounted lease payments	$	136,847
Present value adjustment	(40,042)
Operating lease liabilities	$	96,805

Current lease liabilities of $2,962 and $2,581 are presented within Accrued expenses and other liabilities while non-current lease liabilities of $93,843 and $54,656 are presented within Long-term obligation under operating leases on the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and Audited Consolidated Balance Sheet as of December 31, 2024, respectively.