Leases

6 Months Ended

Jun. 30, 2023

6. Leases

In connection with the sale of a portion of our corporate campus as further discussed in Note 5, we leased the property pursuant to a master lease for an initial 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 initial lease term. On commencement of the lease, we recorded a right-of-use asset and operating lease liability of $8,800.

Because the rate implicit in the lease is not readily determinable, we used 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:


		June 30,		December 31,
(in thousands)	Balance Sheet Classification	2023		2022
Right-of-use asset	Right-of-use lease asset, net	$	6,694	$	7,093

Operating lease liability (current)	Accounts payable, accrued and other liabilities	$	760	$	745
Operating lease liability (non-current)	Long-term lease liability		6,105		6,489
		$	6,865	$	7,234


	For the Three Months Ended June 30,
(in thousands)	2023		2022
Cash paid for operating lease liabilities	$	250	$	250


	For the Six Months Ended June 30,
(in thousands)	2023		2022
Cash paid for operating lease liabilities	$	500	$	500

Operating lease expense is recognized on a straight-line basis over the lease term. Future amortization of our lease liability as of June 30, 2023 is expected to be:


(in thousands)
2023 (remaining)	$	500
2024		1,008
2025		1,035
2026		1,064
2027		1,093
Thereafter		3,158
Future lease payments, gross		7,858
Less: Imputed interest		(993	)
Operating lease liability	$	6,865