The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2026 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised.

Lease right-of-use assets and liabilities are recognized at the lease’s commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances.

The Company’s operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected a practical expedient that allows it to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments.

Leases with a term of one year or less are not recognized on the Company’s condensed consolidated balance sheets, but rather are expensed on a straight-line basis over the lease term.

In June 2023, the Company entered into a sublease for a portion of its San Francisco office location. The sublease has a remaining lease term of less than one year. Sublease income, which is recorded as a reduction of rent expense, was not material for the three and six months ended July 31, 2024.

The following table presents information about leases on the condensed consolidated balance sheet as of the dates indicated (in thousands):


	July 31, 2024		January 31, 2024
Assets:
Lease right-of-use assets	$	3,339	$	3,789
Liabilities:
Lease liabilities, current	4,603		6,180
Lease liabilities, non-current	6,622		6,809

As of July 31, 2024, the weighted average remaining lease term was 2.7 years and the weighted average discount rate used to determine the net present value of the lease liabilities was 3.9%.

The following table presents information about leases on the condensed consolidated statement of operations for the periods indicated (in thousands):


	Three months ended July 31,				Six months ended July 31,
	2024		2023		2024		2023
Operating lease expense	$	873	$	1,313	$	1,702	$	2,671
Short-term lease expense	658		197		1,052		768
Variable lease expense	170		242		380		597

The following table presents supplemental cash flow information about the Company’s leases for the periods indicated (in thousands):


	Three months ended July 31,				Six months ended July 31,
	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities	$	1,641	$	1,665	$	3,269	$	3,322

In the three and six months ended July 31, 2023, the Company recorded an impairment charge of $0.8 million to the right-of-use asset associated with the subleased office, which is the amount that the carrying value of the right-of-use asset exceeded its estimated fair value. The estimated fair value was based on the present value of the estimated cash flows that could be generated from subleasing the property for the remaining lease term. The impairment charge was recorded in general and administrative expenses on the condensed consolidated statement of operations. There were no impairment charges recorded in the three and six months ended July 31, 2024.