Leases

12 Months Ended

Dec. 31, 2024

Note 15. 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,
	2024			2023
Operating lease costs
Fixed	$	3,852		$	5,330
Short-term		1,225			345
Variable		4			23
Sub-leases		(289	)		(50	)
Total operating lease costs	$	4,792		$	5,648

Finance lease costs
Amortization of leased assets	$	5		$	78
Interest on lease liabilities		1			2
Total finance lease costs	$	6		$	80
Total lease cost	$	4,798		$	5,728

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


		December 31,
	Classification	2024			2023
Assets
Operating leases
Right of use operating lease assets	Other assets	$	13,659		$	7,277
Finance leases
Property and equipment, gross	Property and equipment, net		5,897			5,860
Accumulated depreciation	Property and equipment, net		(5,864	)		(5,860	)
Property and equipment, net	Property and equipment, net		33			—
Total lease assets		$	13,692		$	7,277

Liabilities
Operating leases
Other current	Current portion of operating lease liability	$	4,245		$	3,354
Non-current	Operating lease liability, less current portion		9,149			5,931
Total operating liabilities			13,394			9,285
Finance leases
Other current	Accrued liabilities		13			—
Non-current	Other liabilities		18			—
Total finance liabilities			31			—
Total lease liabilities		$	13,425		$	9,285

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


Years Ending December 31,	Operating Leases			Finance Leases			Total
2025	$	5,378		$	12		$	5,390
2026		4,451			15			4,466
2027		3,019			8			3,027
2028		1,832			—			1,832
2029		924			—			924
Thereafter		70			—			70
Total minimum lease payments	$	15,674		$	35		$	15,709
Less: Imputed interest		(1,941	)		(4	)		(1,945	)
Present value of minimum lease payments	$	13,733		$	31		$	13,764

Lease term and discount rates are as follows:


	Year Ended December 31,
	2024			2023
Weighted average remaining lease term
Operating leases	3.4 Years			3.4 Years
Finance leases	2.6 Years				—

Weighted average discount rate
Operating leases		7.85	%		6.85	%
Finance leases		8.20	%		—

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


	Year Ended December 31,
	2024		2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	4,373	$	6,825
Operating cash flows from finance leases	0			2
Financing cash flows from finance leases		7		104
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	9,956	$	5,084
Finance leases		41		—
Amortization:
Amortization of right-of-use operating lease assets (1)	$	3,346	$	4,766

(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.