Leases

6 Months Ended

Jun. 30, 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. Assets under operating leases are included in Right-of-use lease asset, and the related liabilities are included in Lease liability current and Lease liability, non-current on the Condensed Consolidated Balance Sheets.

Assets under finance leases, which primarily represent computer equipment, are subject to a rental agreement for utilization of this equipment; however, we retain our primary obligation under the original financing terms. Therefore, the Company does not have a right-of-use asset, but it does carry the lease liability related to this financed equipment, on the Condensed Consolidated Balance Sheets. The present value of the rent receivable from the rental agreement is included in Other assets, net, and the related lease liability is included in Other accrued expenses and current liabilities and Finance lease, non-current on the Condensed Consolidated Balance Sheets.

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


	Six Months Ended June 30,						Three Months Ended June 30,
(In Thousands)	2023			2024			2023		2024
Operating lease cost	$	644		$	287		$	152	$	144
Finance lease cost:
Amortization of right-of-use assets		69			—			56		—
Interest on lease liabilities		18			41			18		19
Variable lease cost		—			(3	)		—		(8	)
Short-term operating lease cost		138			12			44		6
Total lease cost		869			337			270		161
Other information:
Weighted-average remaining lease term - operating leases		3.8			3.0
Weighted-average remaining lease term - finance leases		2.4			1.4
Weighted-average discount rate - operating leases		6.6	%		6.8	%
Weighted-average discount rate - finance leases		14.8	%		14.1	%
Cash paid for operating leases	$	1,411		$	276		$	168	$	133
Cash paid for finance leases	$	66		$	229		$	66	$	115

As of June 30, 2024, the Company’s future payments under operating and finance lease liabilities were as follows:


(In Thousands)	Operating Leases			Finance Leases
2024	$	283		$	152
2025		566			421
2026		397			—
2027		381			—
2028 and thereafter		—			—
Gross future lease payments		1,627			573
Less: imputed interest		(174	)		(54	)
Present value of total lease liabilities		1,453			519
Less: current portion of lease liabilities		(486	)		(263	)
Total long-term lease liabilities	$	967		$	256