NOTE 7: LEASES
The Company leases its office facilities under agreements that expire at various dates through July 2032.
Components of operating lease expense were as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2024 | | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
| | | | | |
| Operating lease cost | | $ | 2,697 | | | $ | 2,875 | | $ | 2,827 | |
| Short-term lease cost | | — | | | 154 | | 417 | |
| Variable lease cost | | 176 | | | 89 | | 20 | |
| | | | | |
| Total | | $ | 2,873 | | | $ | 3,118 | | $ | 3,264 | |
Supplementary cash flow information related to operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2024 | | Year Ended December 31, 2023 | Year Ended December 31, 2022 |
| | | | | |
| Cash paid for operating leases | | $ | 3,906 | | | $ | 3,353 | | $ | 1,845 | |
As of December 31, 2024, the weighted-average discount rate is 4.6% and the weighted-average remaining term is 7.2 years. Maturities of the Company’s operating lease liabilities as of December 31, 2024 were as follows:
| | | | | | | | |
| Year Ending December 31, | | |
| | |
| 2025 | | 3,119 | |
| 2026 | | 3,181 | |
| 2027 | | 2,749 | |
| 2028 | | 2,371 | |
| 2029 | | 2,371 | |
| 2030 and thereafter | | 6,154 | |
| Total operating lease payments | | 19,945 | |
| Less: imputed interest | | 2,178 | |
| Total operating lease liabilities | | $ | 17,767 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.