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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | (10) Commitments and Contingencies Leases The Company has operating leases for corporate offices, equipment, software and hardware. The Company has entered into operating leases for the majority of its real estate locations, primarily office space. These leases are generally for periods of three to seven years with various renewal options. The depreciable life of leased assets is limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. We determine if a contract contains a lease at contract inception. Right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use the Company’s incremental borrowing rate. Right-of-use assets are included in other assets and lease liabilities are included in accounts payable and accrued expenses in our Condensed Consolidated Balance Sheet. The following table presents the supplemental balance sheet information related to leases:
Schedule of balance sheet information related to leases |  |  |  |  |  |  |  |
|  | December 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Operating Leases |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 51,093 |  |  | $ | 29,575 |
Less: Accumulated amortization right-of-use assets |  |  | (31,644 | ) |  |  | (26,651 | )
Operating lease right-of-use assets, net |  | $ | 19,449 |  |  | $ | 2,924 |
Operating lease liabilities |  | $ | (21,471 | ) |  | $ | (3,220 | )
Finance Leases |  |  |  |  |  |  |  |
Property and equipment, at cost |  | $ | 3,794 |  |  | $ | 3,474 |
Less: Accumulated depreciation |  |  | (3,488 | ) |  |  | (3,385 | )
Property and equipment, net |  | $ | 306 |  |  | $ | 89 |
Finance lease liabilities |  | $ | (315 | ) |  | $ | (93 | )
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating lease |  |  | 5.0% |  |  |  | 5.0% |
Finance lease |  |  | 6.5% |  |  |  | 6.5% |
Maturities of lease liabilities were as follows:
Schedule of maturities of lease |  |  |  |  |  |  |  |
(In thousands) |  | Operating |  |  | Finance |
Year Ending December 31, |  | Lease |  |  | Lease |
2025 |  | $ | 5,233 |  |  | $ | 128 |
2026 |  |  | 5,084 |  |  |  | 118 |
2027 |  |  | 5,242 |  |  |  | 61 |
2028 |  |  | 5,408 |  |  |  | 30 |
2029 |  |  | 3,761 |  |  |  | 10 |
Thereafter |  |  | 985 |  |  |  | – |
Total undiscounted lease payments |  |  | 25,713 |  |  |  | 347 |
Less amounts representing interest |  |  | (4,242 | ) |  |  | (32 | )
Lease Liability |  | $ | 21,471 |  |  | $ | 315 |
The following table presents the leases expense included in Occupancy, General and administrative on our Condensed Consolidated Statement of Operations:
Schedule of lease cost |  |  |  |  |  |  |  |  |  |  |  |
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (In thousands) |
Operating lease cost |  | $ | 3,582 |  |  | $ | 5,547 |  |  | $ | 6,650 |
Finance lease cost |  |  | 115 |  |  |  | 158 |  |  |  | 987 |
Total lease cost |  | $ | 3,697 |  |  | $ | 5,705 |  |  | $ | 7,637 |
The following table presents the supplemental cash flow information related to leases:
Schedule of supplemental cash flow information related to leases |  |  |  |  |  |  |  |  |  |  |  |
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (In thousands) |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 5,308 |  |  | $ | 5,547 |  |  | $ | 7,056 |
Operating cash flows from finance leases |  |  | 97 |  |  |  | 152 |  |  |  | 948 |
Financing cash flows from finance leases |  |  | 18 |  |  |  | 6 |  |  |  | 40 |
Legal Proceedings Consumer Litigation. We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Consumers can and do initiate lawsuits against us alleging violations of law applicable to collection of receivables, and such lawsuits sometimes allege that resolution as a class action is appropriate. For the most part, we have legal and factual defenses to consumer claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances of each case. Following our filing of a complaint for a deficiency judgment in the Superior Court at Waterbury, Connecticut, the defendant filed a cross-claim on October 16, 2019 alleging that our deficiency notices were not compliant with Connecticut law, and seeking relief on behalf of a class of Connecticut obligors whose vehicles we had repossessed. The complaint seeks primarily damages, injunctive relief, waiver of contract deficiencies, and attorney fees and interest. The defendant’s contract provided for resolution of disputes exclusively by arbitration, and exclusively on an individual basis, not a class basis. Nevertheless, in August 2021, the court denied our motion to compel arbitration, without opinion. In April 2024, a motion for certification of a class was filed. Prior to the motion being ruled upon, summary judgment was granted in our favor, disposing of the claims against CPS. An appeal of the summary judgment ruling was filed on October 25, 2024 and a cross appeal of the denial of the motion to compel arbitration was filed on October 31, 2024. In General. There can be no assurance as to the outcomes of the matters described or referenced above. We record at each measurement date, most recently as of December 31, 2024, our best estimate of probable incurred losses for legal contingencies, including the matters identified above. The amount of losses that may ultimately be incurred cannot be estimated with certainty. However, based on such information as is available to us, we believe that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described or identified above, as of December 31, 2024 does not exceed $3.2 million. Accordingly, we believe that the ultimate resolution of such legal proceedings and contingencies should not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the uncertainties inherent in contested proceedings there can be no assurance that the ultimate resolution of these matters will not be material to our operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our income for that period.

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