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LEASES

12 Months Ended

Dec. 31, 2024

NOTE 9—LEASES

The Company recognizes lease payments in the Consolidated Statements of Income and Comprehensive 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 October 2033, 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,
	2024		2023
Lease cost
Operating lease cost	$	2,604	$	2,501
Finance lease cost:
Amortization of right-of-use assets		150		121
Interest on lease liabilities		17		7
Short-term lease cost		46		45
Variable lease cost		289		159
Total lease cost	$	3,106	$	2,833

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	$	17	$	7
Operating cash flows from operating leases	$	2,708	$	2,562
Financing cash flows from finance leases	$	161	$	132

Supplemental balance sheet information related to leases was as follows:


(In thousands, except lease term and discount rate)	Years Ended December 31,
	2024		2023
Operating leases
Operating lease right-of-use assets	$	5,437	$	7,473

Current operating lease liabilities ⁽¹⁾	$	2,328	$	2,589
Non-current operating lease liabilities		3,416		5,287
Total operating lease liabilities	$	5,744	$	7,876

Finance leases
Finance lease right-of-use assets ⁽²⁾	$	139	$	188

Current finance lease liabilities ⁽¹⁾	$	106	$	120
Non-current finance lease liabilities		36		64
Total finance lease liabilities	$	142	$	184

Weighted average remaining lease term (in years)
Operating leases		4.3		4.7
Finance leases		1.6		2.1
Weighted average discount rate
Operating leases		9.7%		9.4%
Finance leases		10.9%		10.4%

(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,
2025	$	2,432	$	112
2026		1,805		27
2027		844		10
2028		498		8
2029		460		1
Thereafter		1,164		—
Total lease payments		7,203		158
Less imputed interest		(1,459)		(16)
Total	$	5,744	$	142