Leases

3 Months Ended

Mar. 31, 2021

The Company has operating leases for administrative offices in the United States (California), Canada, India, United Kingdom and Germany.

The Company terminated the lease in Ratingen, Germany during January 31, 2021. The Company entered into two new operating leases for its administrative offices in Ratingen, Germany, both from February 1, 2021 through January 1, 2023. The monthly lease rate is 2,510 EUR and 1,010 EUR per month.

The Company has no other operating or financing leases with terms greater than 12 months.

Right-of-use assets is summarized below (in thousands):


	As of March 31, 2021
Palo Alto, CA Office	$	631
Encino, CA Office	194
Hyderabad, India Office	365
Coquitlam, Canada Office	98
Westminster, Canada Office	11
Toronto, Canada Office	961
Ratingen, Germany Office	93
Berlin, Germany Office	556
Slough, United Kingdom Office	34
Less accumulated amortization	(995)
Right-of-use asset, net	$	1,948

Lease expense for operating leases recorded in the balance sheet is included in operating costs and expenses and is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. Operating lease expenses, inclusive of short-term and variable lease expenses, recognized in our consolidated statement of income for the three months ended March 31, 2021 was $0.3 million.

During the three months ended March 31, 2021, the Company recorded $165,121 as rent expense to the right-of-use assets.

Lease liability is summarized below (in thousands):


	As of March 31, 2021
Total lease liability	$	1,976
Less: short term portion	(637)
Long term portion	$	1,339

Maturity analysis under the lease agreement is as follows (in thousands):


Year ending December 31, 2021	$	539
Year ending December 31, 2022	661
Year ending December 31, 2023	368
Year ending December 31, 2024	273
Year ending December 31, 2025	258
Year ending December 31, 2026	108
Total	$	2,207
Less: Present value discount	(231)
Lease liability	$	1,976

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at the date of adoption of Topic 842. As of March 31, 2021, the weighted average remaining lease term is 3.81 and the weighted average discount rate used to determine the operating lease liabilities was 8.0%.