The Company has multiple operating leases for office space and a finance lease for equipment that expire at various dates through 2037. The Company has elected the package of practical expedients under the transition guidance of ASC Topic 842, Leases, to exclude short-term leases from the balance sheet and to combine lease and non-lease

components. The Company classifies finance lease right of use assets under property and equipment, net and finance short-term and long-term lease liabilities under other accrued liabilities and other liabilities, long-term, respectively.

Upon inception of a lease, the Company determines if an arrangement is a lease, if it is classified as an operating or finance lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that the Company will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense.

In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the rate implicit in the lease is not readily determinable. Upon execution of a new lease, the Company performs an analysis to determine its incremental borrowing rate using its current borrowing rate, adjusted for various factors including level of collateralization and lease term. As of March 31, 2024, the remaining weighted average lease term for operating and finance leases was 12 years.

During the three months ended March 31, 2024, operating lease right of use assets increased by $2,952 due to contingency resolutions associated with office leases.

Variable and short-term lease costs for the Company's operating and finance leases were immaterial for the three months ended March 31, 2024. Additional details of the Company’s operating and finance leases are presented in the following table:

Maturities of operating and finance lease liabilities as of March 31, 2024 under noncancelable operating leases were as follows:


Year ending December 31:
Remainder of 2024	$	13,337
2025	17,457
2026	17,136
2027	15,963
2028	14,950
Thereafter	112,027
Total future minimum lease payments	190,870
Less: imputed interest	(64,699)
Present value of future minimum lease payments	126,171
Less: current portion of lease payments	17,027
Lease liabilities, long-term	$	109,144

From time to time, the Company may become involved in routine litigation arising in the ordinary course of business. While the results of such litigation cannot be predicted with certainty, management believes that the final outcome of such matters is not likely to have a material adverse effect on the Company’s financial position or results of operations or cash flows.

The Company is currently under audit with a royalty partner. As of March 31, 2024, the Company believes a contingency is probable and has accrued $2,500 related to this audit.