Leases

3 Months Ended

Mar. 31, 2022

Note 5. Leases

The Company leases real estate property under operating leases. The Company leases office space in California, Michigan, Malaysia, Japan, Taiwan, the Netherlands, and Ukraine all under non-cancellable operating leases with various expiration dates through April 2027. In January 2021, the Company signed an amendment to its Santa Clara, California office space lease where the lessor provided the Company lease incentives of $0.4 million and extended the term of the lease by three months. The amendment was accounted as a single modified lease and the remaining payments were remeasured using an updated discount rate. During the three months ended March 31, 2022, the Company commenced three operating leases with 2 to 5.3 year lease terms, and recorded right-of-use assets of $3.7 million, current lease liabilities of $0.7 million, and long-term lease liabilities of $2.9 million upon the commencement of these leases.

The remaining lease terms vary from a few months to 5 years. For certain of its leases the Company has options to extend the lease term for periods varying from one to five years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. The Company also has variable lease payments that are primarily comprised of common area maintenance and utility charges.

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheet as of March 31, 2022:


	As of
	March 31, 2022			December 31, 2021
	(in thousands)
Right-of-use assets	$	11,478		$	8,194
Lease liabilities included in accrued expenses and other current liabilities		2,109			1,336
Lease liabilities - non-current		8,941			6,398
Total operating lease liabilities	$	11,050		$	7,734
Weighted-average remaining lease term (years)		4.7			5.0
Weighted-average discount rate		4.4	%		4.5	%

The table below presents certain information related to the lease costs for operating leases for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
	(in thousands)
Operating lease cost	$	558	$	315
Short-term lease cost		534		78
Variable lease cost		94		83
Total lease cost	$	1,186	$	476

Cash paid for operating lease liabilities was $0.5 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively.

Operating Lease Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheet as of March 31, 2022:


	(in thousands)
Remainder of 2022	$	1,879
2023		2,655
2024		2,595
2025		2,479
2026		2,062
2027 and beyond		584
Total minimum lease payments		12,254
Less: amount of lease payments representing interest		(1,204	)
Present value of future minimum lease payments		11,050
Less: current obligations under leases		(2,109	)
Long-term lease liabilities	$	8,941

During the three months ended March 31, 2022, the Company entered into an operating lease that commences in May 2022 with a 7 year term, for which the Company expects to record right-of use asset of approximately $0.6 million and a lease liability of approximately $0.7 million at the commencement of this lease.