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LEASES

12 Months Ended

Dec. 31, 2023

NOTE 8—LEASES

The Company recognizes lease payments in the consolidated statements of income on a straight-line basis over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments.

The Company leases its office space and office equipment under long-term operating lease agreements which expire at various dates through November 2030, some of which include options to extend the leases for up to 3 years, and some of which included options to terminate the leases within 1 year. Under the operating leases, the Company pays certain operating expenses relating to the office equipment and leased property.

The components of lease expense were as follows:



	Years Ended December 31,
	2023		2022
Lease cost
Operating lease cost	$	2,501	$	2,128
Finance lease cost:
Amortization of right-of-use assets		121		375
Interest on lease liabilities		7		40
Short-term lease cost		45		44
Variable lease cost		159		225
Sublease income		—		(187)
Total lease cost	$	2,833	$	2,625

Supplemental cash flow information related to leases was as follows
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	7	$	40
Operating cash flows from operating leases	$	2,562	$	2,594
Financing cash flows from finance leases	$	132	$	381

Supplemental balance sheet information related to leases was as follows:


(In thousands, except lease term and discount rate)	Years Ended December 31,
	2023		2022
Operating leases
Operating lease right-of-use assets	$	7,473	$	6,780

Current operating lease liabilities ⁽¹⁾	$	2,589		2,399
Non-current operating lease liabilities		5,287		4,857
Total operating lease liabilities	$	7,876	$	7,256

Finance leases
Finance lease right-of-use assets ⁽²⁾	$	188	$	110

Current finance lease liabilities ⁽¹⁾	$	120		381
Non-current finance lease liabilities		64		46
Total finance lease liabilities	$	184	$	427

Weighted average remaining lease term (in years)
Operating leases		4.7		3.8
Finance leases		2.1		2.0
Weighted average discount rate
Operating leases		9.4%		7.9%
Finance leases		10.4%		5.4%

(1)

Current lease liabilities are included in “Accrued expenses and other current liabilities.”

(2)

Finance lease right-of-assets are included in “Furniture, fixtures and equipment, net.”

Maturities of lease liabilities were as follows:


	Operating		Finance
	Leases		Leases
Year Ending December 31,
2024	$	2,766	$	123
2025		2,543		50
2026		1,850		8
2027		865		8
2028		543		8
Thereafter		1,886		1
Total lease payments		10,453		198
Less imputed interest		(2,577)		(14)
Total	$	7,876	$	184