v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company recognizes lease liabilities and ROU assets upon commencement for all material leases with a term greater than 12 months. The Company has elected an expedient not to recognize leases with a lease term of 12 months or less on the balance sheet. These short-term leases are expensed on a straight-line basis over the lease term.
ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. Lease liabilities are accreted each period and reduced for payments. The ROU asset also includes other adjustments, such as for the effects of escalating rents, rent abatement or initial lease costs. The lease term may include periods covered by options to extend or terminate the lease when it is reasonably certain that the Company will exercise a renewal option, or reasonably certain it will not exercise an early termination option. For operating leases, lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term. For finance leases, the ROU asset depreciates on a straight-line basis over the shorter of the lease term or useful life of the ROU asset and the lease liability accretes interest based on the interest method using the discount rate determined at lease commencement. The Company’s finance leases are not material.
The Company has operating leases for facilities and office spaces. Operating lease assets and the related lease liabilities are included within the ROU operating lease assets on the condensed consolidated balance sheets. The
determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. The Company has operating leases for certain facilities, and office spaces to be used in its operations, with remaining lease terms ranging from monthly to 7 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for additional years. These optional periods have not been considered in the determination of the ROU or lease liabilities associated with these leases as management did not consider it reasonably certain it would exercise the options.
During the three months ended March 31, 2025, the Company earned income from subleasing a warehouse facility for the remaining life of an existing master lease. The sublease agreement did not release the Company from its obligations under the master lease, and no modifications were made to the lease agreement. Income from the sublease is recognized on a straight-line basis over the term of the agreement.
The Company’s lease and sublease agreements do not contain any termination options, material residual value guarantees, material bargain purchase options or material restrictive covenants. The Company does not have any lease transactions with related parties.
Total lease cost includes the following components:
Three Months Ended March 31,
20252024
(in thousands)
Operating lease expense cost$518 $313 
Sublease income
(78)(78)
Total lease cost, net of sublease income$440 $235 
March 31,
2025		December 31,
2024
Supplemental balance sheet information
(in thousands)
Operating lease right-of-use assets$5,192 $5,561 
Operating lease liabilities - short-term$1,558 $1,514 
Operating lease liabilities - long-term3,803 4,203 
Total operating lease liabilities$5,361 $5,717 
Weighted-average remaining lease term (years)
Operating leases3.23.4
Weighted-average discount rate (%)
Operating leases11.1 %11.1 %
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities(in thousands)
Operating cash outflows from operating lease expenses
$517 $306 
Operating cash inflows from sublease
(83)(80)
Operating cash outflows from operating leases, net of sublease income$434 $226 
ROU assets obtained in exchange for new lease liabilities
Operating leases$— $734 
Maturities of lease liabilities as of March 31, 2025 were as follows:
Years Ending December 31,
Operating Leases
(in thousands)
2025 (remaining)
$1,532 
2026
1,938 
20271,659 
2028837 
2029433 
Thereafter100 
Total future minimum lease payments6,499 
Less: Amount of lease payments representing interest(1,138)
Present value of future minimum lease payments$5,361 
The undiscounted future cash receipts from the Company’s sublease as of March 31, 2025 were as follows:
Years Ending December 31,
Sublease
(in thousands)
2025 (remaining)
$249 
2026
343 
2027355 
2028368 
2029315 
Thereafter— 
Total undiscounted future sublease cash receipts
$1,630 
Leases Leases
The Company recognizes lease liabilities and ROU assets upon commencement for all material leases with a term greater than 12 months. The Company has elected an expedient not to recognize leases with a lease term of 12 months or less on the balance sheet. These short-term leases are expensed on a straight-line basis over the lease term.
ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. Lease liabilities are accreted each period and reduced for payments. The ROU asset also includes other adjustments, such as for the effects of escalating rents, rent abatement or initial lease costs. The lease term may include periods covered by options to extend or terminate the lease when it is reasonably certain that the Company will exercise a renewal option, or reasonably certain it will not exercise an early termination option. For operating leases, lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term. For finance leases, the ROU asset depreciates on a straight-line basis over the shorter of the lease term or useful life of the ROU asset and the lease liability accretes interest based on the interest method using the discount rate determined at lease commencement. The Company’s finance leases are not material.
The Company has operating leases for facilities and office spaces. Operating lease assets and the related lease liabilities are included within the ROU operating lease assets on the condensed consolidated balance sheets. The
determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. The Company has operating leases for certain facilities, and office spaces to be used in its operations, with remaining lease terms ranging from monthly to 7 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for additional years. These optional periods have not been considered in the determination of the ROU or lease liabilities associated with these leases as management did not consider it reasonably certain it would exercise the options.
During the three months ended March 31, 2025, the Company earned income from subleasing a warehouse facility for the remaining life of an existing master lease. The sublease agreement did not release the Company from its obligations under the master lease, and no modifications were made to the lease agreement. Income from the sublease is recognized on a straight-line basis over the term of the agreement.
The Company’s lease and sublease agreements do not contain any termination options, material residual value guarantees, material bargain purchase options or material restrictive covenants. The Company does not have any lease transactions with related parties.
Total lease cost includes the following components:
Three Months Ended March 31,
20252024
(in thousands)
Operating lease expense cost$518 $313 
Sublease income
(78)(78)
Total lease cost, net of sublease income$440 $235 
March 31,
2025		December 31,
2024
Supplemental balance sheet information
(in thousands)
Operating lease right-of-use assets$5,192 $5,561 
Operating lease liabilities - short-term$1,558 $1,514 
Operating lease liabilities - long-term3,803 4,203 
Total operating lease liabilities$5,361 $5,717 
Weighted-average remaining lease term (years)
Operating leases3.23.4
Weighted-average discount rate (%)
Operating leases11.1 %11.1 %
Three Months Ended March 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities(in thousands)
Operating cash outflows from operating lease expenses
$517 $306 
Operating cash inflows from sublease
(83)(80)
Operating cash outflows from operating leases, net of sublease income$434 $226 
ROU assets obtained in exchange for new lease liabilities
Operating leases$— $734 
Maturities of lease liabilities as of March 31, 2025 were as follows:
Years Ending December 31,
Operating Leases
(in thousands)
2025 (remaining)
$1,532 
2026
1,938 
20271,659 
2028837 
2029433 
Thereafter100 
Total future minimum lease payments6,499 
Less: Amount of lease payments representing interest(1,138)
Present value of future minimum lease payments$5,361 
The undiscounted future cash receipts from the Company’s sublease as of March 31, 2025 were as follows:
Years Ending December 31,
Sublease
(in thousands)
2025 (remaining)
$249 
2026
343 
2027355 
2028368 
2029315 
Thereafter— 
Total undiscounted future sublease cash receipts
$1,630