Operating Leases

12 Months Ended

Dec. 31, 2024

On July 31, 2024, the Company entered into a 10-year extension of its lease through March 31, 2035, for office space of approximately 37,829 square feet at a single location.

As of December 31, 2024 and December 31, 2023, the carrying value of the right-of-use asset, which is included in property and equipment on the consolidated balance sheets, was approximately $3.4 million and $0.6 million, respectively. As of December 31, 2024 and December 31, 2023, the carrying value of the lease liability was approximately $6.3 million and $0.8 million, respectively.

The carrying value of the lease liability includes both principal and accrued interest on lease payments that are due in the current and future periods. Lease liability is measured at the present value of the remaining lease payments, discounted using the discount rate determined at the lease commencement date. Interest expense on lease liability is recognized in the consolidated income statements over the lease term.

As of December 31, 2024, the weighted average discount rate applied to the Company’s lease liability was 6.5%, reflective of the Company’s incremental borrowing rate. The determination of the incremental borrowing rate involves judgment, including assumptions about the Company’s credit risk, economic conditions, and the lease-specific circumstances such as lease term and asset class. Changes in these assumptions could have a material impact on the measurement of the Company’s lease liability.

The following table summarizes the total lease and operating expenses for the years ended December 31, 2024, 2023 and 2022:


For the year ended December 31,
2024		2023		2022
$	934,353	$	908,516	$	918,496

The following table provides a maturity analysis of the Company’s operating lease liability, based on undiscounted cash flows,

as of December 31, 2024:



	December 31, 2024
2025	$	723,480
2026	773,603
2027	796,868
2028	820,889
2029	845,384
2030 and Thereafter	4,870,010
Total undiscounted operating lease payments	8,830,234
Less: Imputed interest	(2,494,744)
Present value of operating lease liability	$	6,335,490