Leases

12 Months Ended

Dec. 31, 2022

8. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 9 to the consolidated financial statements, we leased the property pursuant to a master lease for a term extending through September 30, 2030, with two five-year extensions. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability, based on the present value of the lease payments over the lease term. On commencement of the lease, we recorded a right-of-use asset and operating lease liability of $8.8 million.

Because the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate to determine the present value of lease payments. Information related to our right-of-use asset and related lease liability were as follows:


		December 31,		December 31,
(in thousands)	Balance Sheet Classification	2022		2021
Right-of-use asset	Right-of-use lease asset, net	$	7,093	$	7,871

Operating lease liability (current)	Accounts payable, accrued and other liabilities	$	745	$	718
Operating lease liability (non-current)	Long-term lease liability		6,489		7,234
		$	7,234	$	7,952


	For the Year Ended December 31,
(in thousands)	2022		2021
Cash paid for operating lease liabilities	$	1,001	$	1,001

Operating lease expense is recognized on a straight-line basis over the lease term. Future amortization of our lease liability as of December 31, 2022 is expected to be as follows:


(in thousands)
2023		1,001
2024		1,008
2025		1,035
2026		1,064
2027		1,093
Thereafter		3,160
Future lease payments, gross		8,361
Less: Imputed interest		(1,127	)
Operating lease liability	$	7,234