9. COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases office space pursuant to operating leases that are subject to specific escalation clauses. Rent expense charged to operations for the three months ended March 31, 2025 and 2024 amounted to $1,712 and $1,698, respectively. The Company received sublease income from sub-tenants during the three months ended March 31, 2025 and 2024 of $30 and $36, respectively. Therefore, for the three months ended March 31, 2025 and 2024, net rent expense amounted to $1,682 and $1,662, respectively, and is included in general and administrative expenses in the Condensed Consolidated Statements of Operations.

As security for performance under the leases, the Company is required to maintain letters of credit in favor of the landlord totaling $506 as of March 31, 2025 and December 31, 2024. Furthermore, the Company maintains an $80 letter of credit in favor of its Boston landlord. Both are collateralized by the Company’s revolving credit facility with City National Bank.

In December 2015, the Company extended its lease related to its New York City office space. The amended lease commenced on October 1, 2017 and expires on September 30, 2028. The lease is subject to escalation clauses and provides for a rent-free period of twelve months and for tenant improvements of up to $2,080. Monthly rent under this extension is $420.

The aggregate principal balance of finance leases was $230 and $262 as of March 31, 2025 and December 31, 2024, respectively.

Depreciation expense relating to finance lease assets was $32 and $33 for the three months ended March 31, 2025 and 2024, respectively.