Leases

12 Months Ended

Dec. 31, 2023

Note 14. Leases

The Company has operating and finance leases for office facilities and equipment. Certain of our leases include rental payments that will adjust periodically for inflation or certain adjustments based on step increases. An insignificant number of our leases contain residual value guarantees and none of our agreements contain material restrictive covenants. Variable rent expenses consist primarily of maintenance, property taxes, and charges based on usage.

The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists of operating leases.

The components of lease costs are as follows (in thousands):


	Year Ended December 31,
	2023			2022
Operating lease costs
Fixed	$	5,330		$	7,102
Short-term		345			247
Variable		23			28
Sub-leases		(50	)		(56	)
Total operating lease costs	$	5,648		$	7,321

Finance lease costs
Amortization of leased assets	$	78		$	713
Interest on lease liabilities		2			29
Total finance lease costs	$	80		$	742
Total lease cost	$	5,728		$	8,063

Supplemental balance sheet information related to leases is as follows (in thousands):


		December 31,
	Classification	2023			2022
Assets
Operating leases
Right of use operating lease assets	Other assets	$	7,277		$	10,674
Finance leases
Property and equipment, gross	Property and equipment, net		5,860			5,094
Accumulated depreciation	Property and equipment, net		(5,860	)		(5,017	)
Property and equipment, net	Property and equipment, net		—			77
Total lease assets		$	7,277		$	10,751

Liabilities
Operating leases
Other current	Current portion of operating lease liability	$	3,354		$	4,957
Non-current	Operating lease liability, less current portion		5,931			7,879
Total operating liabilities			9,285			12,836
Finance leases
Other current	Accrued liabilities		—			104
Total finance liabilities			—			104
Total lease liabilities		$	9,285		$	12,940

Maturities of lease liabilities are as follows (in thousands):


Years Ending December 31,	Operating Leases
2024	$	3,844
2025		2,659
2026		1,903
2027		873
2028		815
Thereafter		909
Total minimum lease payments	$	11,003
Less: Imputed interest		(1,473	)
Present value of minimum lease payments	$	9,530

Lease term and discount rates are as follows:


	Year Ended December 31,
	2023			2022
Weighted average remaining lease term
Operating leases	3.4 Years			2.7 Years
Finance leases		—		0.7 Years

Weighted average discount rate
Operating leases		6.85	%		5.06	%
Finance leases		—			5.72	%

Supplemental cash flow information related to leases was as follows (in thousands):


	Year Ended December 31,
	2023		2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	6,825	$	7,738
Operating cash flows from finance leases		2		29
Financing cash flows from finance leases		104		884
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,084	$	19,972
Amortization:
Amortization of right-of-use operating lease assets (1)	$	4,766	$	6,343

(1)

Amortization of right of use operating lease assets during the period is reflected in operating lease liabilities on the consolidated statements of cash flows.

Rent expense under fixed operating leases was $6.1 million for the year ended December 31, 2021.