Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

The Company’s operating leases are primarily for office space, service facility centers and equipment under operating lease arrangements that expire at various dates over the next ten years. The Company’s leases do not contain any restrictive covenants. The Company’s office leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The Company’s office leases do not contain any material residual value guarantees. The Company’s equipment leases generally do not contain renewal options.

Payments due under the Company’s operating leases include fixed payments as well as variable payments. For the Company’s office leases, variable payments include amounts for the Company’s proportionate share of operating expenses, utilities, property taxes, insurance, common area maintenance and other facility-related expenses. For the Company’s equipment leases, variable payments may consist of sales taxes, property taxes and other fees.

The components of lease costs for the three and nine months ended September 30, 2021 and 2020 are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	302	$	410	$	998	$	1,238
Variable lease cost	65		64		180		253
Total lease cost	$	367	$	474	$	1,178	$	1,491

Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):

	Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:
Operating cash flow from operating leases	$	993	$	1,130
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	288	$	260

Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:

	As of September 30,
	2021	2020
	Years	Years
Weighted average remaining lease term:	6.3	7.1
	Rate	Rate
Weighted average discount rate:	7.7%	7.8%

Future maturities of lease liabilities as of September 30, 2021 are as follows (in thousands):

	Operating Leases
2021	$	276
2022	1,183
2023	979
2024	949
2025	914
2026 and thereafter	2,253
Total undiscounted lease payments	6,554
Less: Imputed interest	(2,290)
Total lease liabilities	$	4,264