Leases

3 Months Ended

Mar. 31, 2023

LEASES

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities and current portion of long-term liabilities, and operating lease liabilities in our condensed consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of one year to five years. Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows:


	Three Months Ended
	March 31,
	2023		2022
Operating lease cost:	$	658	$	677


	Three Months Ended
	March 31,
	2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	640		$	705
Leased assets obtained in exchange for new operating lease liabilities	2,726			—
Weighted average remaining lease term (in years)	2.85			2.87
Weighted average discount rate	6.72		%	5.00		%

Future minimum lease payments under non-cancellable leases as of March 31, 2023 were as follows:


Operating Lease Payments
Nine months ending December 31, 2023	$	1,656
Years ending December 31:
2024	2,321
2025	1,648
2026	578
Thereafter	86



Total operating lease payments	6,289
Less imputed interest	(582)
Total operating lease liabilities	$	5,707

As of March 31, 2023, we had $2,726 in operating lease liabilities that had not commenced.