The Company’s operating lease for its headquarters facility office space in Redwood City, California began in June 2021 and expires in May 2023.

The lease was recognized at inception with a right-of-use asset equal to $0.6 million and a liability for $0.5 million. The short-term liability was equal to $39,000 and $155,000 as of March 31, 2023 and December 31, 2022, respectively. The weighted average discount rate was 9% over a remaining term of 2 months. The discount rate was determined based on estimates of the Company’s incremental borrowing rate, as the discount rate implicit in the lease cannot be readily determined.

The components of lease expense during the three months ended March 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease cost:
Operating lease cost	$	81	$	81
Short-term lease cost		10		5
Total operating lease cost	$	91	$	86

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated.