The Company leases office space under non-cancelable operating leases with various expiration dates through 2029. The Company accounts for leases under ASU 2016-02, Leases (Topic 842) (“ASC 842”) by recording right-of-use assets and liabilities. The right-of-use asset represents the Company’s right to use underlying assets for the lease term and the lease liability represents the Company’s obligation to make lease payments under the lease. The Company determines if an arrangement is, or contains, a lease at contract inception and exercises judgment and applies certain assumptions when determining the discount rate, lease term, and lease payments. ASC 842 requires a lessee to record a lease liability based on the discounted unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, the incremental borrowing rate. Generally, the Company does not have knowledge of the rate implicit in the lease and, therefore, uses its incremental borrowing rate for a lease. The lease term includes the non-cancelable period of the lease plus any additional periods covered by an option to extend that the Company is reasonably certain to exercise. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Certain of the Company’s lease agreements include escalating lease payments. Additionally, certain lease agreements contain renewal provisions and other provisions which require the Company to pay taxes, insurance, or maintenance costs.

The Company subleases certain leased office space to third parties when it determines there is excess leased capacity. In July 2022, the Company entered into a sublease with a third party with respect to substantially all of the

Company’s then-existing corporate headquarters. The sublease commenced on August 26, 2022 and expires on May 30, 2026, unless terminated sooner in accordance with the provisions of the sublease. Pursuant to the terms of the sublease, the subtenant is obligated to pay a fixed monthly rent of $0.8 million, subject to periodic increases. In-lieu of a cash security deposit, the Company received a letter of credit from Citibank for approximately $4.5 million.

In February 2024, in connection with the Complex Disposition, the Company entered into a space sharing license agreement whereby the Company licensed approximately 11,500 square feet (not including shared spaces) to the purchaser of certain assets of Complex Networks in connection with the Complex Disposition. Additionally, in December 2024, the Company entered into space sharing license agreements whereby the Company licensed a portion of the office space in New York City, New York, and Los Angeles, California, to the purchaser of certain assets and liabilities of First We Feast in connection with the First We Feast Disposition. Refer to Note 18 herein for additional details.

In March 2025, the Company entered into a lease agreement for a new office in New York, New York. The lease will commence at a later date in 2025, and expires on the last day of the month in which the 10 year, 4 month anniversary of the rent commencement date occurs. The lease contains an early termination option after 5 years of the rent commencement date, and contains an extension option for 5 years following the expiration date. Undiscounted future payments for this new office lease are approximately $0.2 million through $0.3 million per month throughout the term of the lease. As this lease has not yet commenced, it is not reflected in the Company’s condensed consolidated financial statements. The Company expects to account for this lease as an operating lease under ASC 842 with a right-of-use asset and accompanying lease liability to be recorded in the condensed consolidated balance sheets in the period of commencement.

Sublease rent income is recognized as an offset to rent expense on a straight-line basis over the lease term. In addition to sublease rent, other costs such as common-area maintenance, utilities, and real estate taxes are charged to subtenants over the duration of the lease for their proportionate share of these costs.

The following illustrates the lease costs for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
	2025		2024
Operating lease cost	$	5,873	$	6,177
Sublease income	(4,602)		(4,114)
Total lease cost	$	1,271	$	2,063

All components of total lease cost are recorded within general and administrative expenses within the condensed consolidated statements of operations. The Company does not have material short-term or variable lease costs.

The following amounts were recorded in the Company’s condensed consolidated balance sheets related to operating leases:


	March 31, 2025		December 31, 2024
Assets
Right-of-use assets	$	23,914	$	28,562

Liabilities
Current lease liabilities	$	21,423	$	22,084
Noncurrent lease liabilities	9,929		15,138
Total lease liabilities	$	31,352	$	37,222

Other information related to leases was as follows:


	Three Months Ended March 31, 2025		Three Months Ended March 31, 2024
Supplemental cash flow information:
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating lease liabilities	$	7,114	$	7,032


	March 31, 2025		December 31, 2024
Weighted average remaining lease term (years)	1.7		1.8
Weighted average discount rate	14.1	%	14.0	%

Maturities of lease liabilities as of March 31, 2025 were as follows:


Year	Operating Leases
Remainder of 2025	$	18,465
2026	12,759
2027	2,441
2028	842
2029	553
Thereafter	—
Total lease payments	35,060
Less: imputed interest	(3,708)
Total	$	31,352

Sublease receipts to be received in the future under noncancelable subleases as of March 31, 2025 were as follows:


Year	Amount
Remainder of 2025	$	12,211
2026	4,692


Thereafter	—
Total	$	16,903