Leases |
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Leases |
Note 8 – Leases The Company leases office space, company-owned transition studios, warehouse, training centers and a video recording studio. Certain real estate leases include one or more options to renew. Right-of-use (“ROU”) assets from operating leases are subject to the impairment guidance in ASC Topic 360, Property, Plant, and Equipment, and are reviewed for impairment when indicators of impairment are present. ASC Topic 360 requires three steps to identify, recognize and measure impairment. If indicators of impairment are present (Step 1), the Company performs a recoverability test (Step 2) comparing the sum of the estimated undiscounted cash flows attributable to the ROU asset in question to the carrying amount. If the undiscounted cash flows used in the recoverability test are less than the carrying amount, the Company estimates the fair value of the ROU asset and recognizes an impairment loss when the carrying amount exceeds the estimated fair value (Step 3). When determining the fair value of the ROU asset, the Company estimated what market participants would pay to lease the assets assuming the highest and best use in the assets' current forms. The Company recognized ROU asset impairment charges of $1,915 and $0 during the three months ended March 31, 2025 and 2024, respectively. Supplemental balance sheet information related to leases is summarized as follows:
The following table presents the components of lease expense during the three months ended March 31, 2025 and 2024:
The following table presents the supplemental cash flow information related to operating leases during the three months ended March 31, 2025 and 2024:
The following table presents other information related to leases:
Maturities of lease liabilities as of March 31, 2025 are summarized as follows:
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