Effective January 1, 2022, the Company adopted ASC 842 Leases using the modified retrospective approach. The Company elected the use of the package of practical expedients permitted under the transition guidance which allows the Company not to reassess whether a contract contains a lease, carry forward the historical lease classification and not reassess initial direct lease costs. The Company also elected to apply the short-term measurement and recognition exemption in which the right-of-use (“ROU”) assets and lease liabilities are not recognized for short-term leases. Adoption of this standard resulted in recording of net operating lease ROU assets and corresponding operating lease liabilities of $1.2 million and $1.2 million, respectively. The standard did not materially affect the consolidated statements of operations and had no impact on the consolidated statements of cash flows.


		December 31,
	Location on the Consolidated Balance Sheets	2023		2022
Right-of-use asset	Other assets	$	2,871	$	4,060

Lease liability, current portion	Accrued expenses and other	$	1,140	$	1,162
Lease liability, net current portion	Other long-term liabilities	2,116		3,256
Total lease liability		$	3,256	$	4,418

The Company determines if an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets also include any initial direct costs and prepayments less lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. As the Company’s leases generally do not provide an implicit rate, the Company uses its collateralized incremental borrowing rate based on the information available at the lease commencement date, including lease term, in determining the present value of lease payments. Lease expense for these leases is recognized on a straight-line basis over the lease term.

Operating lease arrangements are comprised primarily of real estate and equipment agreements for which the ROU assets are included in other assets and the corresponding lease liabilities, depending on their maturity, are included in accrued expenses and other or other long-term liabilities in the consolidated balance sheets. The Company also elected to apply the practical expedient to consider non-lease components as a part of the lease. The Company’s leases contain certain non-lease components for common area maintenance which are variable on a month to month basis and as such recorded as a variable lease expense as incurred.


For the Year Ended December 31,	Operating Leases
2024	$	1,261
2025	958
2026	950
2027	325
Total lease payments	3,494
Less: Imputed lease interest	(238)
Total lease liabilities	$	3,256


	Year Ended December 31,
	2023		2022
Operating cash flows from operating leases	$	1,566	$	1,295
Non-cash investing activities:
Lease liabilities arising from obtaining right-of-use assets	$	—	$	5,229