v3.24.3
LEASES (Tables)
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Schedule of Assets and Liabilities Related to Operating and Finance Leases
The following table presents the assets and liabilities related to the Company’s operating and finance leases as of September 30, 2024 and December 31, 2023:

(in thousands)
September 30, 2024
December 31, 2023
Assets
Balance Sheet Classification
Operating lease ROU assets
Operating lease right-of-use assets$9,363 $443 
Finance lease ROU assets
Property and equipment, net4,019 — 
Total ROU assets
$13,382 $443 
Liabilities
Current portion:
Operating lease liabilities
Operating lease liabilities, current portion$367 $124 
Finance lease liability
Finance lease liability, current portion179 — 
Long-term portion:
Operating lease liabilitiesOperating lease liabilities, net of current portion15,014 354 
Finance lease liabilityFinance lease liability, net of current portion4,832 — 
Total lease liabilities$20,392 $478 
Schedule of Total Lease Expense and Leasing Activities
Lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expenses are comprised of the following:

For the Three Months Ended September 30,
For the Nine Months Ended September 30,
(in thousands)2024202320242023
Lease costs:
Operating lease cost$437 $65 $1,402 $250 
Finance lease cost:
Amortization of ROU asset (1)
11 — 21 — 
Short-term lease rent expense66 8 103 28 
Variable lease cost31,107 26,263 74,336 46,201 
Total rent expense$31,621 $26,336 $75,862 $46,479 

(1) Amortization of finance lease ROU asset is included in “Cost of revenues - depreciation and amortization” on the Condensed Consolidated Statements of Operations.
Additional information regarding the Company’s leasing activities is as follows:

For the Nine Months Ended September 30,
20242023
Operating cash flows from operating leases$1,250$319
Financing cash flows from finance lease$163$—
Weighted-average remaining lease term (in years):
Operating leases6.63.3
Finance lease96.5—
Weighted-average discount rate:
Operating leases6.7 %5.0 %
Finance lease7.2 %— %
Schedule of Future Minimum Operating Lease Payments
The following table presents the Company’s future minimum lease payments as of September 30, 2024:
 
(in thousands)
YearOperating LeasesFinance Lease
2024 (remaining)$99 $— 
2025457 168 
20261,080 173 
20272,835 178 
20282,782 183 
Thereafter6,973 89,096 
Total14,226 89,798 
Less: Imputed interest (3,503)(85,921)
Present value of lease liability (1)
$10,723 $3,877 

(1) Present value of lease liability exclude unfavorable lease liabilities associated with the GC Data Center Equity Holdings, LLC operating lease and the Garden City acquisition finance lease for a net value of $4.7 million and $1.1 million, respectively. Refer to Note 3 - Acquisitions, for further information.