Leases

12 Months Ended

Dec. 31, 2023

The Company leases office space and a production suite. All leased facilities are classified as operating leases with remaining lease terms between one and five years. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and will include these options in the lease term when they are reasonably certain of being exercised. The Company’s lease agreements do not contain any material residual value guarantees or material variable lease payments. For the Company’s leased production suite, contract consideration was allocated to lease and non-lease components on the basis of relative standalone price.

The components of lease costs, which are included in selling, general and administrative expenses in the consolidated statements of loss for the years ended December 31, 2023, 2022 and 2021 were as follows:


Lease cost:	2023		2022		2021

Operating lease costs	$	1,039	$	1,028	$	821
Sublease income	(123)		(116)		(110)
Total lease cost	$	916	$	912	$	711

During the year ended December 31, 2023, the Company increased its operating lease liabilities by $1,803 due to an increase in the lease term for the production suite, offset by $1,036 for cash paid. During the year ended December 31, 2022, the Company reduced its operating lease liabilities by $963 for cash paid.

As of December 31, 2023, the Company’s operating leases have a weighted-average remaining lease term of 3.7 years and a weighted-average discount rate of 7.8%. The Company’s lease contracts do not provide a readily determinable implicit rate. The Company’s estimated incremental borrowing rate is based on information available at the inception of the lease.

Maturities of the Company’s operating lease liabilities were as follows:


Maturities:	Operating Leases

2024	$	1,091
2025	683
2026	477
2027	477
2028	316
Thereafter	—
Total lease payments	3,044
Less: interest	(420)
Present value of lease liabilities	$	2,624