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Leases
 12 Months Ended
Dec. 31, 2024
Leases  
Leases

7. Leases

 

The Company has a real estate lease for the use of office space.

 

The table below presents information related to the operating leases:

 

   As of December 31, 
   2024   2023 
Operating lease costs during the year  $431   $1,052 
Cash payments included in the measurement of operating lease liability during the year   916    486 
Operating lease liability arising from obtaining lease right-of-use assets during the year   2,583    - 
Weighted-average remaining lease term (in years) as of year-end   5.92    0.75 
Weighted-average discount rate during the year   10.90%   9.90%

 

The Company generally utilizes its incremental borrowing rates on a collateralized basis, reflecting the Company’s credit quality and the term of the lease at the commencement of the lease in determining the present value of future payments since the implicit rate for the Company’s leases is not readily determinable.

 

Variable lease expense includes rental increases that are not fixed, such as those based on amounts paid to the lessor based on cost or consumption, such as maintenance and utilities.

 

The components of operating lease costs were as follows:

 

   2024   2023 
   As of December 31, 
   2024   2023 
Operating lease costs included in:          
General and administrative  $884   $1,344 
Total operating costs (1)   884    1,344 
Less sublease income   (453)   (292)
Total operating lease costs  $431   $1,052 

 

(1)Includes certain costs associated with an expired business membership agreement that permitted access to certain office space of $0 and $620 and month-to-month lease arrangements of $0 and $396 for the years ended December 31, 2024 and 2023, respectively.

 

Maturities of the operating lease liability as of December 31, 2024 are summarized as follows:

 

Years Ending December 31,    
2025  $- 
2026   652 
2027   652 
2028   652 
2029   652 
Thereafter   597 
Total lease payments   3,205 
Less imputed interest   (987)
Present value of operating lease liability  $2,218 
Current portion of operating lease liability  $254 
Long-term portion of operating lease liability   1,964 
Total operating lease liability  $2,218 

 

Sublease Agreement – The Company has entered into agreements to sublease certain space that it does not occupy, through the duration of the lease terms, with one sublease that expires in September 2024 and two other subleases (these operating leases were recorded as an assumed lease liability in connection with the acquisition of Men’s Journal) that expires in March 2025. As of December 31, 2024, the Company is entitled to receive total sublease income of $265 which will offset an assumed liability.

 

 

Lease Termination – Effective September 30, 2021, the Company terminated a certain lease arrangement for office space. In connection with the termination, the Company agreed to pay the landlord cash payments and credits for market rate advertising, where $4,000 of cash payments were paid during each year ended December 31, 2024 and 2023, and market rate advertising of $800 and $615 recognized during the years ended December 31, 2024 and 2023, respectively, leaving no further obligations related to the lease termination.