Leases

3 Months Ended

Mar. 31, 2024

Note 9: Leases

The Company has operating leases for its corporate office headquarters in Seattle, Washington, and for office space in Wichita, Kansas. The Company recognizes its operating lease agreements in accordance with ASC 842 and recognizes rent expense on a straight-line basis over the lease term with any lease incentives amortized as a reduction of rent expense over the lease term.

Lease cost recognized in the Company’s Condensed Consolidated Statements of Operations and other information is summarized as follows:


	Three Months Ended March 31,
(In Thousands)	2023			2024
Operating lease cost	$	487		$	207
Finance lease cost
Amortization of right-of-use assets	$	13		$	66
Interest on lease liabilities	$	5		$	22
Short-term operating lease cost		95			—
Total operating lease cost		600			295
Other information:
Weighted-average remaining lease term - operating leases		2.7			3.4
Weighted-average remaining lease term - finance leases		2.5			1.7
Weighted-average discount rate - operating leases (1)		4.0	%		6.8	%
Weighted-average discount rate - finance leases		13.2	%		14.1	%

(1) The discount rate used to compute the present value of total lease liabilities as of March 31, 2024 was based on the Company's estimated incremental borrowing rate of similar secured borrowings available to the Company as of the commencement date of lease.

Assets under finance leases, which primarily represent computer equipment, are included in Other assets, net, with the related liabilities included in Lease liability current, and Finance lease, noncurrent on the Company's Condensed Consolidated Balance Sheets.

As of March 31, 2024, the Company’s operating and finance lease liabilities were as follows (in thousands):


(In Thousands)	Operating Leases			Finance Leases
Gross future lease payments	$	1,767		$	687
Less: imputed interest		(199	)		(73	)
Present value of total lease liabilities		1,568			614
Less: current portion of lease liabilities		(472	)		(274	)
Total long-term lease liabilities	$	1,096		$	340

We have entered into a rental agreement for utilization of our financed server equipment. We retain our primary obligation under the original financing terms.