Leases

3 Months Ended

Mar. 31, 2025

The Company rents certain office facilities and equipment under noncancelable operating leases. As of March 31, 2025, approximately 94,000 square feet of office space is utilized for our sales and recruiting offices, delivery centers, and corporate headquarters. All of our leases are classified as operating leases. The average initial lease term is 3.9 years. Several leases have an option to renew, at our sole discretion, for an additional term. Our present lease terms range from less than one year to 4.5 years with a weighted average of 2.9 years. Leases with an initial term of twelve months or less are not recorded on the balance sheet.

The following table summarizes the balance sheet classification of the lease assets and related lease liabilities:


	March 31, 2025		December 31, 2024
	(in thousands)
Assets:
Long-term operating lease right-of-use assets	$	3,514	$	3,832

Liabilities:
Short-term operating lease liability	$	1,291	$	1,265
Long-term operating lease liability		2,158		2,486

Total Liabilities	$	3,449	$	3,751

Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows:


	Amount as of March 31, 2025
	(in thousands)
2025 (for remainder of year)	$	1,085
2026		1,437
2027		775
2028		259
2029		196
Thereafter		—

Total	$	3,752
Less: Imputed interest		(303	)

Present value of operating lease liabilities	$	3,449

The weighted average discount rate used to calculate the present value of future lease payments was 5.6%.

We recognize rent expense for these leases on a straight-line basis over the lease

ter

m. Rental expense for the three months ended March 31, 2025 and 2024 totaled $0.4 million in each period.

Total cash paid for lease liabilities for the three months ended March 31, 2025 and 2024 totaled $0.4 million in each period.

There were no new leases entered into during the three months ended March 31, 2025 and 2024. New leases are considered

non-cash

transactions.