Leases

We determine if an arrangement is a lease at inception. On our balance sheet, our office leases are included in right-of-use (“ROU”) lease asset, net and related lease liabilities are included in operating lease and operating lease, long-term. We determined that we do

not

currently have any leases that we are required to classify as finance leases.

ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do

not

provide an implicit rate, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. We use the implicit rate in the lease when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

December 2019,

we entered into an operating lease agreement for a new corporate office facility in Seattle, Washington. The term of the lease is

months, with a rent date which started on

May 1, 2020

and the lease term ending on

July 31, 2027.

As a result of entering this lease agreement, in

December 2019,

we recorded additional ROU assets and net lease liabilities of

$1.2

million on our consolidated balance sheets. There was

material impact to our statement of operations or statement of cash flows as a result of entering into this lease.

November 2020,

we renewed the lease for our office facility in the UK. The term of the lease is

120

months, with rent payments starting on

November 30, 2020

and the lease term ending on

November 8, 2030.

The Company has an opportunity to break the lease at the

five

-year mark in

November 2025.

As it is reasonably certain that we will utilize this option, the accounting for this lease utilized

November 2025

as the end date. The lease commencement date was

November 9, 2020.

As a result of entering this lease agreement, we recorded additional ROU assets and net lease liabilities of

$365,559

on our consolidated balance sheet as of

December 31, 2020.

There was

material impact to our statement of operations or statement of cash flows as a result of entering into this lease.

Our leases have remaining terms of

five

seven

years. The only leases that contain renewal options are for office space leases at our Seattle and Trowbridge locations. In the

fourth

quarter of

2019,

we made the decision

not

to renew our Bellevue lease, which expired at the end of

May 2020,

and we made the decision

not

to renew our Taiwan lease, exiting that facility in

February 2020.

Because of changes in our business, we are

not

able to determine with reasonable certainty whether we will renew our Seattle lease. As a result, we have

not

considered renewal options when recording ROU assets, lease liabilities or lease expense.

The following tables present the components of our lease expense and supplemental cash flow information related to our leases for the

three

months ended

March 31, 2021

(in thousands):

	Three Months Ended
Total component lease expense was as follows:	March 31, 2021
Operating leases	$	105
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities	$	104

The following table presents supplemental balance sheet information related to our operating leases as of

March 31, 2021

(dollars in thousands):

	March 31, 2021
Right-of-use lease assets	$	1,773

Current portion of operating lease liability	$	344
Operating lease liability, net of current portion		1,552
Total operating lease liabilities	$	1,896

Weighted average remaining lease term (years)		5.9
Weighted average discount rate		8.5	%

The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of

March 31, 2021

(in thousands):

Years Ending December 31,
2021, remainder of year	$	214
2022		317
2023		324
2024		331
2025		326
After 2025		440
Total minimum lease payments		1,952
Less: amount representing interest		(56	)
Present value of lease liabilities	$	1,896