Operating Leases

12 Months Ended

Dec. 31, 2024

On May 15, 2019, the Company entered into a five-year non-cancelable operating lease (the “Lease Agreement”), which was set to expire January 31, 2025, for its corporate headquarters in Newport Beach, California. Lease payments increase each year on February 1 based on an annual rent escalation clause. The Company has an option to extend the term of the lease for an additional 60 months, which was not recognized as part of its ROU assets and lease liabilities.

On July 27, 2023, the Company entered into the First Amendment to the Lease Agreement (the “First Lease Amendment”) for its corporate headquarters. The First Lease Amendment includes a lease extension to January 31, 2030 with a three-month rent abatement period and additional office space. On July 27, 2023, the effective date of the First Lease Amendment, the Company recognized additional ROU assets and lease liabilities in the amount of $4,550. On August 1, 2024, the lease commencement date for the additional office space, the Company recognized additional ROU assets and lease liabilities in the amount of $3,002.

On October 16, 2024, the Company entered into the Second Amendment to the Lease Agreement (the “Second Lease Amendment”) to lease additional office space for its corporate headquarters. The lease is expected to commence on or around the second half of 2025 and is set to expire January 31, 2030. Fixed cash payments under this amendment are estimated to be $1,876 over the term of the lease. The Company expects to account for this lease an operating lease.

The Company’s lease agreement does not contain any residual value guarantees or material restrictive covenants. The payments associated with the renewal will only be included in the measurement of the lease liability and ROU assets if the exercise of the renewal option is determined to be reasonably certain. The Company considers the timing of the renewal period and other economic factors such as the financial implications of a decision to extend or not to extend a lease in determining if the renewal option is reasonably certain to be exercised.

The components of operating lease expense are as follows:


	Year Ended December 31,
	2024		2023		2022
Fixed operating lease expense	$	1,526	$	1,164	$	1,084
Variable operating lease expense	150		183		91
	$	1,676	$	1,347	$	1,175

The weighted-average remaining lease term and discount rate are as follows:


	As of December 31,
	2024	2023	2022
Weighted-average remaining lease term (years)	5.1	6.1	2.1
Weighted-average discount rate	9.7%	11.0%	9.4%
Cash paid for amounts included in the measurement of lease liabilities	$1,433	$1,320	$1,265

Operating lease expenses were included in the selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss.

The following table presents the future minimum payments under the operating lease agreements with non-cancelable terms as of December 31, 2024:


Fiscal year
2025	$	1,718
2026	2,138
2027	2,212
2028	2,290
2029	2,370
Thereafter	198
Total operating lease payments	10,926
Less: imputed interest	(2,453)
Present value of operating lease liabilities	$	8,473