10. LEASES

We lease our office space under lease arrangements with expiration dates on or before March 31, 2024. We recognize lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets. We combine lease and non-lease components for new and reassessed leases. We apply discount rates to operating leases using a portfolio approach.

Below is a summary of our right-of-use assets and lease liabilities (in thousands):

	Balance Sheets Classification		March 31, 2023		December 31, 2022
Assets
Right-of-use assets	Other assets	$	210	$	360
Liabilities
Operating lease liabilities - current	Other current liabilities		263		486
Operating lease liabilities - long-term	Other long-term liabilities		—		56
Total lease liabilities		$	263	$	542

The table below provides supplemental information related to operating leases during the three months ended March 31, 2023 and 2022 (in thousands except for lease term):

		Three Months Ended March 31,
		2023		2022
Cash paid within operating cash flow	$	282	$	355
Weighted average lease terms (in years)		0.69		1.11
Weighted average discount rates		N/A		3.93	%

On June 6, 2022, we entered into a sublease agreement with Innovobot Fund LLP for our facility located in Montreal Canada (the “Montreal Facility”). This sublease commenced on June 8, 2022, and ends on February 27, 2024 which approximates the lease termination date of the original Montreal Facility lease.

On March 12, 2020, we entered into a sublease agreement with Neato Robotics, Inc. for our facility located in San Jose, California (“SJ Facility”). This sublease commenced in June 2020 and ended on April 30, 2023, which is the lease termination date of the original SJ Facility lease.

In accordance with provisions of ASC 842, we treated each sublease as a separate lease as we were not relieved of the primary obligation under each original lease. We continue to account for each original lease as a lessee, in the same manner as prior to the commencement date of the sublease. We accounted for each sublease as a lessor of such lease. We classified each sublease as an operating lease as it did not meet the criteria of a Sale-Type or Direct Financing lease.

We recognize operating lease expense and lease payments from the sublease, on a straight-line basis, in our Condensed Consolidated Statements of Income and Comprehensive Income over the lease terms. During the three months ended March 31, 2023 and 2022, our net operating lease expenses were as follows (in thousands):

		Three Months Ended March 31,
		2023			2022
Operating lease cost	$	318		$	210
Variable lease payments		128			137
Sublease income		(257	)		(257	)
Total lease cost	$	189		$	90

Minimum future lease payments obligations as of March 31, 2023 were as follows (in thousands):

For the Years Ending December 31,
2023	$	279
2024		39
Total lease payments		318
Less: Interest		(55	)
Total lease liability	$	263