Leases

9 Months Ended

Sep. 30, 2024

Lessee Arrangements

The Company has operating leases for its office space, which have remaining lease terms of up to seven years. The Company does not have finance leases.

Some of these leases include renewal options to extend the leases for up to five years and/or termination options to terminate the leases within one year. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease.

As of September 30, 2024, the Company's operating leases had a weighted-average remaining lease term of approximately six years and a weighted-average incremental borrowing rate of 4.1%.

Cash paid for amounts included in the operating lease liabilities was $1.4 million and $3.8 million for the three and nine months ended September 30, 2024, respectively, and $1.3 and $3.5 million for the three and nine months ended September 30, 2023, respectively.

The components of lease cost were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease cost	$	1,030	$	1,234	$	3,486	$	3,655
Short-term lease cost	325		268		373		609
Variable lease cost	—		—		—		9
Total lease cost	$	1,355	$	1,502	$	3,859	$	4,273

As of September 30, 2024, the Company had a remaining contractual obligation of $1.8 million related to a short-term lease to be paid over the following three years. The effective term of this lease is based on the cumulative days available for use throughout the contractual term, which is less than one year. The cost for this lease is included in the disclosure of short-term lease cost. This lease and other of our short-term leases are not recorded on the Company's condensed consolidated balance sheet due to our accounting policy election for short-term leases.

Future minimum lease payments are as follows: