Leases

3 Months Ended

Mar. 31, 2024

Lessor Information— Refer to Note 2 to these condensed consolidated financial statements for further information about the Company’s revenue generating activities as a lessor. All of the Company’s customer agreements are considered operating leases.

Lessee Information— The Company determines if a contract contains a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. The Company uses the incremental borrowing rate to determine the present value of lease payments, as the implicit rate is not readily determinable. The ROU asset also includes any lease payments made. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company leases office space in New York, NY and Plano, TX under operating leases with non-cancelable lease terms which end in June 2025 and June 2031, respectively. Lease expenses are included in operating expenses in our condensed consolidated statement of operations and comprehensive loss.

The following is a schedule of future minimum lease payments required under the non-cancelable leases as of March 31, 2024, reconciled to the present value of operating lease liabilities:


Year	Future Minimum Lease Payments
2024	$	302
2025	275
2026	108
2027	111
2028	114
Thereafter	302
Total future minimum lease payments	$	1,212
Less: Interest	(356)
Total present value of lease liabilities	$	856

Lease Liabilities— Lease liabilities consist of the following:


	March 31,		December 31,
	2024		2023
Current portion of lease liabilities	$	334	$	297
Long-term lease liabilities, net of current portion	522		614
Total lease liabilities	$	856	$	911

We recognized rent expense for operating leases of $101 and $134 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the Company had a weighted average remaining lease term of 5.2 years and a weighted average discount rate of 12.2%.