The Company adopted ASC 842 using the modified retrospective approach, electing the practical expedient that allows us not to restate our comparative periods prior to the adoption of the standard on January 1, 2022. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption.

In September 2017, the Company entered into a non-cancelable operating lease for 11,256 square feet of office and laboratory space. Rent is payable monthly, increasing by approximately 3% each year. The initial term of the lease was 3 years and the Company renewed the lease for an additional four years with an expiration date of August 31, 2024.

In December 2021 the Company entered into a non-cancelable operating lease for 7,051 square feet of office space with an expiration date of October 31, 2022. The Company expected to occupy the temporary space for less than 12 months, the Company did not record a right-of-use asset and lease liability on its balance sheet for the temporary space. As of June 30, 2022, the remaining future minimum lease payments were less than $0.1 million through the expiration date of October 31, 2022.

In April 2022 the Company entered into a non-cancelable operating lease for 8,045 square feet of office space. Rent is payable monthly, increasing by approximately 2.5% each year. The term of the lease is 127 months, expecting to commence in the fourth quarter of 2022. Upon commencement, the Company will record a right-of-use asset and a lease liability on the Condensed Consolidated Balance Sheet.

During the first quarter of 2022, the Company took delivery of a portion of its commercial car fleet for its salesforce. Each commercial fleet lease has a term of 12 months including options to renew for a total of 54 months, we believe a total of 36 months is deemed reasonable to exercise. In addition, the Company can terminate the vehicle leases at any time without a significant penalty. For the discount rate used in the commercial fleet lease, the Company used the weighted-average rate implicit in the commercial fleet leases.

The following table reconciles the Company’s undiscounted operating lease cash flows to its operating lease liability (in thousands):


	June 30, 2022
Remaining 2022	$	712
2023		1,366
2024		1,016
2025		157
Total undiscounted cash flows		3,251
Less: imputed interest		(188	)
Total lease liabilities		3,063
Less: current portion		(1,276	)
Lease liabilities	$	1,787

The weighted average remaining lease term and the weighted average discount rate used to determine the operating lease liability were as follows:



	June 30, 2022
Weighted average remaining lease term (years)		2.5
Weighted average discount rate		5.2	%

Operating lease expense was $0.3 million and $0.6 million for the three and six months ended June 30, 2022, respectively. Variable lease expense was $0.1 million and $0.2 million for operating leases during the three and six months ended June 30, 2022. Rent expense recognized for short term leases was $0.1 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively, and $0.1 million and $0.3 million for the six months ended June 30, 2022 and 2021, respectively.