Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
The Company’s operating leases are primarily for office space, service facility centers and equipment under operating lease arrangements that expire at various dates over the next eight years. The Company’s leases do not contain any restrictive covenants. The Company’s office leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The Company’s office leases do not contain any material residual value guarantees. The Company’s equipment leases generally do not contain renewal options.
Payments due under the Company’s operating leases include fixed payments as well as variable payments. For the Company’s office leases, variable payments include amounts for the Company’s proportionate share of operating expenses, utilities, property taxes, insurance, common area maintenance and other facility-related expenses. For the Company’s equipment leases, variable payments may consist of sales taxes, property taxes and other fees.
The components of lease costs for the three and nine months ended September 30, 2023 and 2022 are as follows (in thousands):
  Three Months Ended
September 30,
Nine Months Ended
September 30,
  2023 2022 2023 2022
Operating lease cost $ 378  $ 342  $ 1,099  $ 1,006 
Variable lease cost 97  77  260  231 
Total lease cost $ 475  $ 419  $ 1,359  $ 1,237 
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
  Nine Months Ended
September 30,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:    
Operating cash flow from operating leases $ 1,111  $ 946 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 586  $ 18 
Increases to right of use assets resulting from lease modifications:
Operating leases $ 552  $ 1,050 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
  As of September 30,
  2023 2022
Weighted average remaining lease term: 5.7 6.9
  Rate Rate
Weighted average discount rate: 6.8% 7.1%
Future maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):
Leases (a)
2023 $ 347 
2024 1,396 
2025 1,310 
2026 1,115 
2027 929 
2028 and thereafter
Total undiscounted lease payments 7,134 
Less: Imputed interest (2,316)
Total lease liabilities $ 4,818 
(a) Excludes $1.8 million of legally binding minimum lease payments for an office lease signed but not yet commenced. This lease has an expected term of 7 years and is expected to commence in the first quarter of 2024.