Leases

3 Months Ended

Mar. 31, 2022

The Company determines whether an arrangement is a lease, or contains a lease, at inception and recognizes right-of-use assets and lease liabilities, initially measured at present value of the lease payments, on our balance sheet and classifies the leases as either operating or financing leases. The Company leases office space in Henderson, Nevada, which lease was entered into with an effective date of March 24, 2022 and serves as the Company's new headquarters, as well as in Santa Monica, California and in Rosemont, Illinois, which are accounted for as operating leases and various computer equipment used in the operation of our business, which are accounted for as finance leases. The operating lease agreements include a total of 13,166 square feet of office space for lease terms ranging from 26 months to 60 months. The finance leases are generally for 36 month terms.

The Company’s operating leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The lease includes renewal options and escalation clauses. The renewal options have not been included in the calculation of the operating lease liability and right-of-use asset as the Company is not reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses.

Quantitative information for our leases is as follows (in thousands):


Condensed Consolidated Balance Sheets	Balance Sheet Classification	March 31, 2022		December 31, 2021
Assets
Operating lease assets	"Operating lease right-of-use-assets"	$	861	$	656
Finance lease assets	"Property and equipment, net"	155		186
Total lease assets		$	1,016	$	842
Liabilities
Current
Operating lease liabilities	"Current portion of operating lease liabilities"	$	617	$	595
Finance lease liabilities	"Other accrued liabilities"	248		282
Non-current
Operating lease liabilities	"Long-term operating lease liabilities"	1,034		932
Finance lease liabilities	"Long-term finance lease liabilities"	86		136
Total lease liabilities		$	1,985	$	1,945


	Three Months Ended March 31,
Condensed Consolidated Statements of Operations		2022		2021
Operating lease expense		$	98	$	171
Short-term lease rent expense		4		23
Variable lease expense		15		12
Total rent expense		$	117	$	206
Finance lease expense
Amortization of leased assets		$	31	$	79
Interest on lease liabilities		7		12
Total		$	38	$	91


	Three Months Ended March 31,
Condensed Consolidated Statements of Cash Flows	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	179	$	148
Financing cash flows from finance leases	84		78


Other Information	March 31, 2022		December 31, 2021
Weighted-average remaining lease term (years)
Operating leases	2.9		2.3
Financing leases	1.3		1.5
Weighted-average discount rate
Operating leases	12.46	%	10.73	%
Finance leases	11.79	%	11.46	%

The following table sets forth maturities of our lease liabilities (in thousands):


	March 31, 2022
	Operating Leases		Financing Leases		Total
Remainder of 2022	$	578	$	211	$	789
2023	760		139		899
2024	420		—		420
2025	90		—		90
2026 and thereafter	109		—		109


Total lease payments	1,957		350		2,307
Less: imputed interest	(306)		(16)		(322)
Present value of lease liabilities	1,651		334		1,985
Less: current portion	(617)		(248)		(865)
Lease liabilities, non-current	$	1,034	$	86	$	1,120

Leases

Quantitative information for our leases is as follows (in thousands):


Condensed Consolidated Balance Sheets	Balance Sheet Classification	March 31, 2022		December 31, 2021
Assets
Operating lease assets	"Operating lease right-of-use-assets"	$	861	$	656
Finance lease assets	"Property and equipment, net"	155		186
Total lease assets		$	1,016	$	842
Liabilities
Current
Operating lease liabilities	"Current portion of operating lease liabilities"	$	617	$	595
Finance lease liabilities	"Other accrued liabilities"	248		282
Non-current
Operating lease liabilities	"Long-term operating lease liabilities"	1,034		932
Finance lease liabilities	"Long-term finance lease liabilities"	86		136
Total lease liabilities		$	1,985	$	1,945


	Three Months Ended March 31,
Condensed Consolidated Statements of Operations		2022		2021
Operating lease expense		$	98	$	171
Short-term lease rent expense		4		23
Variable lease expense		15		12
Total rent expense		$	117	$	206
Finance lease expense
Amortization of leased assets		$	31	$	79
Interest on lease liabilities		7		12
Total		$	38	$	91


	Three Months Ended March 31,
Condensed Consolidated Statements of Cash Flows	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	179	$	148
Financing cash flows from finance leases	84		78


Other Information	March 31, 2022		December 31, 2021
Weighted-average remaining lease term (years)
Operating leases	2.9		2.3
Financing leases	1.3		1.5
Weighted-average discount rate
Operating leases	12.46	%	10.73	%
Finance leases	11.79	%	11.46	%

The following table sets forth maturities of our lease liabilities (in thousands):


	March 31, 2022
	Operating Leases		Financing Leases		Total
Remainder of 2022	$	578	$	211	$	789
2023	760		139		899
2024	420		—		420
2025	90		—		90
2026 and thereafter	109		—		109


Total lease payments	1,957		350		2,307
Less: imputed interest	(306)		(16)		(322)
Present value of lease liabilities	1,651		334		1,985
Less: current portion	(617)		(248)		(865)
Lease liabilities, non-current	$	1,034	$	86	$	1,120