Commitments and Contingencies
Operating Leases
The Company has two real estate operating leases. One is associated with its corporate headquarters in Austin, Texas, which commenced on September 1, 2020 and expires on January 31, 2029, and the other is associated with additional office space in Irving, Texas, which commenced on August 19, 2024 and expires on January 31, 2030. Both lease agreements provide a five year lease term extension option, which were not included in the Company’s lease ROU asset and lease liability balances as of December 31, 2024. Both lease agreements contain lease and non-lease components that are accounted for as a single lease component.
For the years ended December 31, 2024, 2023 and 2022, the Company recorded the following lease expenses:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2024 | | 2023 | | 2022 |
| | (in thousands) |
| Operating lease expense | | $ | 1,006 | | | $ | 953 | | | $ | 953 | |
| Variable lease payments | | 322 | | | 401 | | | 408 | |
| Total lease expense | | $ | 1,328 | | | $ | 1,354 | | | $ | 1,361 | |
Additional information related to the Company’s operating lease is as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2024 | | 2023 | | 2022 |
| | ($ in thousands) |
| Operating cash outflows | | $ | 927 | | $ | 896 | | $ | 871 |
| ROU assets obtained in exchange for new lease liabilities | | $ | 594 | | $ | — | | $ | — |
| | | | | | |
| Weighted average remaining lease term (in years) | | 4.23 | | 5.08 | | 6.08 |
| Weighted average discount rate | | 8.58 | % | | 7.72 | % | | 7.72 | % |
The current and non-current lease liabilities are reflected in Other current liabilities and Operating lease liabilities, respectively, on the Company’s Consolidated Balance Sheets, as follows:
| | | | | | | | | | | | |
| December 31, | |
| 2024 | | 2023 | |
| (in thousands) | |
| | | | |
| | | | |
| | | | |
| | | | |
| Other current liabilities | $ | 779 | | | $ | 632 | | |
| Operating lease liabilities | 3,273 | | | 3,450 | | |
| Total operating lease liability | $ | 4,052 | | | $ | 4,082 | | |
The maturity of the Company’s operating lease liabilities as of December 31, 2024 is as follows:
| | | | | | | | |
| | |
| | (in thousands) |
| 2025 | | $ | 1,044 | |
| 2026 | | 1,101 | |
| 2027 | | 1,142 | |
| 2028 | | 1,171 | |
| 2029 | | 241 | |
| Thereafter | | 13 | |
| Total undiscounted liabilities | | 4,712 | |
| Less: Imputed interest | | 660 | |
| Present value of lease liabilities | | $ | 4,052 | |
| | |
Purchase Commitments
The Company has entered into a non-cancellable minimum purchase commitment for third-party credit data services. The expected payments for the minimum purchase commitment at December 31, 2024 were as follows:
| | | | | | | | |
| | |
| | (in thousands) |
| 2025 | | $ | 2,000 | |
| 2026 | | 2,000 | |
| 2027 | | 2,000 | |
Total purchase commitments | | $ | 6,000 | |
| | |
Contingencies
As of December 31, 2024, the Company was not involved in any claim, proceeding or litigation which may be deemed to have a material adverse effect that has not been recorded in the Company’s consolidated financial statements.