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Note 8 - Leases

9 Months Ended

Sep. 30, 2024

8.	Leases

The components of lease expense associated with our lease liabilities and supplemental cash flow information related to those leases were as follows (dollar amounts in thousands):

	*For the Three Months Ended September 30,*						*For the Nine Months Ended September 30,*
	*2024*			*2023*			*2024*			*2023*
Operating lease cost, gross	$	635		$	643		$	1,899		$	1,919
Sublease income		(25	)		(25	)		(73	)		(72	)
Net Operating lease cost	$	610		$	618		$	1,826		$	1,847
Cash paid under operating leases, gross	$	754		$	755		$	2,253		$	1,116

Weighted average remaining lease term - months		113			125
Weighted average discount rate		6.7	%		6.6	%

As of September 30, 2024, maturities of lease liabilities were as follows (in thousands):

	*Gross Lease Payment*			*Payments received from Sublease*			*Net Lease Payment*
2024 (Remainder of 2024)	$	760		$	(25	)	$	735
2025		2,964			(41	)		2,923
2026		2,831			—			2,831
2027		2,699			—			2,699
2028		2,621			—			2,621
Thereafter		14,865			—			14,865
Total lease payments		26,740			(66	)		26,674
Less imputed interest		(7,294	)
Operating lease liabilities	$	19,446

In August 2021, we entered into an operating lease agreement for our corporate headquarters in Atlanta, Georgia (the "Headquarters lease") with an unaffiliated third party. This Headquarters lease initially covered approximately 73,000 square feet and commenced in June 2022 for a 146 month term. The remaining total commitment under this lease is approximately $25.1 million and is included in the table above. In connection with the commencement of this lease, we discontinued most of the subleasing arrangements with third parties for space at our corporate headquarters. A right-of-use asset and liability was recorded at the commencement date of this lease.

We exercised an expansion right under the Headquarters lease to add an additional 26,133 square feet (the "Expansion space") at our corporate headquarters. The Expansion space term commences on the earlier of December 23, 2024 or when we first occupy the space, which has not yet occurred. The Expansion space co-terminates with the Headquarters lease. The other lease terms for the Expansion space are the same as those for the initial space leased under the Headquarters lease.

In addition, we occasionally lease certain equipment under cancelable and non-cancelable leases, which are accounted for as capital leases in our condensed consolidated financial statements. As of September 30, 2024, we had no material non-cancelable capital leases with initial or remaining terms of more than one year.