Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

    On January 1, 2019, the Company adopted a new accounting standard, Topic 842, that amends the guidance for the accounting and reporting of leases. Leases with terms of 12 months or less are expensed on a straight-line basis over the term and are not recorded in the Company's Condensed Consolidated Balance Sheets.

    The Company had two operating leases during the period ended March 31, 2022. In accordance with the guidance of Topic 842, the two leases which are classified as operating leases are included in the Company's Condensed Consolidated Balance Sheet as of March 31, 2022. The Company's two operating leases do not include options to renew, do not contain residual value guarantees, do not have variable lease components, or impose significant restrictions or covenants.

    Right of use assets, "ROU assets", represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments over the respective lease term, with the ROU asset adjusted for deferred rent liability. Lease expense is recognized on a straight line basis over the lease term. As the implicit rate on the leases is not determinable, the Company used an estimated incremental borrowing rate of 8.8% as the discount rate to determine the present value of lease payments.

The weighted average discount rate used was 8.8% and the weighted average remaining lease term is 4.02 years at March 31, 2022. The ROU asset and corresponding operating lease liability recognized at lease inception was $1.2 million all of which was recorded in 2021.

    The following table summarizes information related to the Company's two operating leases and are included in the Company's Balance Sheet as of March 31, 2022.

Balance Sheet descriptions	March 31, 2022
Assets:	(in thousands)
Right of use assets - operating leases	$	875
Liabilities:
Operating leases - current	283
Operating leases - long term	608
Total lease liabilities:	$	891

The following table summarizes the components of operating lease cost for the three months ended March 31, 2022:

Lease costs, (in thousands)	Three months ended March 31, 2022
Operating expenses lease costs	$	97

    As of March 31, 2022, future minimum operating leases payments related to the Company’s operating lease liabilities were as follows:

(in thousands)	March 31, 2022
2022	$	230
2023	225
2024	236
2025	262
2026	110
Total lease payments	1,063
Less imputed interest	(172)
Present value of operating lease liabilities	$	891