Leases

12 Months Ended

Dec. 31, 2024

Note 9: Leases

The Company has operating leases for its corporate office headquarters in Seattle, Washington, and office space in Wichita, Kansas. The Company recognizes its operating lease agreements in accordance with ASC 842, Leases, 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 assets, and the related liabilities are included in Operating lease liability, current and Operating lease liability, non-current on the Consolidated Balance Sheets.

Assets under finance leases, which primarily represent computer equipment, are subject to a rental agreement for a third-party's 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 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 liability, non-current on the Consolidated Balance Sheets.

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


	Year Ended December 31,
(In Thousands)	2024			2023
Operating lease cost	$	575		$	1,067
Finance lease cost:
Amortization of right-of-use assets		—			134
Interest on lease liabilities		72			90
Variable and short-term lease cost		23			182
Total lease cost	$	670		$	1,473
Other information:
Weighted-average remaining lease term - operating leases		2.6			3.6
Weighted-average remaining lease term - finance leases		0.9			1.9
Weighted-average discount rate - operating leases		7.0	%		6.7	%
Weighted-average discount rate - finance leases		14.1	%		14.1	%
Cash paid for operating leases	$	562		$	462
Cash paid for finance leases	$	459		$	268

As of December 31, 2024, the Company’s future payments under operating and finance lease liabilities were as follows:


(In Thousands)	Operating Leases			Finance Leases
2025	$	566		$	421
2026		397			—
2027		380			—
2028		—			—
2029 and thereafter		—			—
Gross future lease payments	$	1,343		$	421
Less: imputed interest		(127	)		(24	)
Present value of total lease liabilities	$	1,216		$	397
Less: current portion of lease liabilities		(495	)		(397	)
Total long-term lease liabilities	$	721		$	—