Operating Leases |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Leases | The Company has operating lease agreements for offices in Chicago, Illinois; Seattle, Washington; Santa Monica, California; Dublin, Ireland; and Kraków, Poland. The Chicago lease expires in December 2032, the Seattle lease expires in January 2031, the Santa Monica lease expires in January 2025, the Dublin lease expires in June 2027, and the Kraków lease expires in December 2029. These operating leases require monthly rental payments ranging from approximately $14,000 to $270,000. Under the terms of the lease agreements, the Company is also responsible for its proportionate share of taxes and operating costs, which are treated as variable lease costs. The Company’s operating leases typically contain options to extend or terminate the term of the lease. The Company currently does not include any options to extend leases in its lease terms as it is not reasonably certain to exercise them. As such, it has recorded lease obligations only through the initial optional termination dates above. In August 2024, the Company entered into a new lease agreement for an office in Kraków, Poland. For accounting purposes under ASC 842, the lease commenced on August 30, 2024, resulting in the recording of a $0.6 million right-of-use operating lease asset and operating lease liability. The lease has an expected expiration date of December 2029. In November 2024, the Company entered into an amendment to its Chicago office lease agreement, which will result in an early termination to one floor of the leased space effective December 31, 2025 and also extended the term for the remaining floor to December 31, 2032. Following the early termination to one floor of leased space on December 31, 2025, the Company’s office space in Chicago will be reduced from approximately 128,000 square feet down to approximately 64,000 square feet. The Company determined that the amendment would be treated as a lease modification. The modification resulted in a remeasurement of the operating lease ROU asset and lease liability, with a net effect of an increase to the ROU asset and lease liability of $2.8 million and $1.2 million, respectively. In addition, the Company recorded a non-cash gain on the lease modification of $1.6 million, which was included in general and administrative expenses in the consolidated statements of operations. In November 2024, the Company entered into an agreement to extend the Dublin office lease through June 30, 2027. This resulted in a remeasurement of the operating lease ROU asset and lease liability. The impact of the remeasurement was a $1.0 million increase to both the operating lease ROU asset and lease liability. The following table provides a summary of operating lease assets and liabilities as of December 31, 2024 (in thousands):
Operating lease expense for the year ended December 31, 2024, 2023, and 2022 was $2.8 million, $2.7 million and $2.3 million, respectively. Variable lease costs for the year ended December 31, 2024, 2023 and 2022 was $3.5 million, $3.6 million and $3.5 million, respectively. Cash payments related to operating leases for the year ended December 31, 2024, 2023 and 2022 were $8.3 million, $8.2 million and $7.7 million, respectively. There was no sublease rental income recognized for any of the periods presented. As of December 31, 2024, the weighted-average remaining lease term is 6.3 years and the weighted-average discount rate is 7.0%. Remaining maturities of operating lease liabilities as of December 31, 2024 are as follows (in thousands):
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