LeasesThe Company determines if a contract contains a lease at inception and recognizes a right-of-use asset, within other assets, and lease liability, within accounts payable and accrued liabilities, based on the present value of future lease payments. In cases where its leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available on the inception date to determine the lease liability.
The Company’s leases are primarily for office facilities which have been classified as operating leases. Its leases have remaining lease terms ranging from less than 1 year to 6 years, some of which include options to extend the leases. Lease expense for the years ended December 31, 2024, 2023, and 2022 was $2.1 million, $2.8 million and $2.6 million, respectively.
The following table provides information regarding the Company’s leases as of December 31, 2024 and 2023:
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| (in thousands) | | 2024 | | 2023 |
| Operating lease right-of-use assets | | $ | 3,135 | | | $ | 4,905 | |
| Operating lease liabilities | | 3,213 | | | 5,228 | |
| Operating lease weighted-average remaining lease term | | 4.39 years | | 4.55 years |
| Operating lease weighted-average discount rate | | 5.01 | % | | 3.95 | % |
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The following table presents the Company’s lease expenses for the years ended December 31, 2024, 2023 and 2022:
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| (in thousands) | | 2024 | | 2023 | | 2022 |
| Operating lease expense | | $ | 1,714 | | | $ | 2,583 | | | $ | 2,414 | |
| Short-term lease expense | | 421 | | | 184 | | | 220 | |
| Total lease expense | | $ | 2,135 | | | $ | 2,767 | | | $ | 2,634 | |
| Operating cash outflows from operating leases | | $ | 2,082 | | | $ | 2,636 | | | $ | 2,382 | |
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The following table sets forth the future minimum lease payment obligations of the Company’s operating leases at December 31, 2024:
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| (in thousands) | | 2024 |
| 2025 | | $ | 968 | |
| 2026 | | 779 | |
| 2027 | | 686 | |
| 2028 | | 651 | |
| 2029 | | 415 | |
| Thereafter | | 133 | |
| Total future minimum operating lease payments | | $ | 3,632 | |
| Less imputed interest | | (419) | |
| Total operating lease liability | | $ | 3,213 | |
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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.