Leases

12 Months Ended

Dec. 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 in January 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 approximately $2,843 and $1,144 per month.

As part of the acquisition of IntraNav on December 9, 2021. the Company acquired right-of-use assets and lease liabilities related to an operating lease for an office space (the IntraNav office) located in Frankfurt, Germany. This lease expires on January 6, 2025 and the current lease rate is approximately $9,753 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 December 31, 2021		As of December 31, 2020
Palo Alto, CA Office	$	631	$	630
Encino, CA Office	—		194
Hyderabad, India Office	359		365
Coquitlam, Canada Office	97		96
Westminster, Canada Office	10		10
Toronto, Canada Office	949		949
Ratingen, Germany Office	90		18
Berlin, Germany Office	536		583
Slough, United Kingdom Office	34		34
Frankfurt, Germany Office	312		—
Less accumulated amortization	(1,282)		(802)
Right-of-use asset, net	$	1,736	$	2,077

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 period ended December 31, 2021 and 2020 was $1.2 million and $5.4 million, respectively.

During the years ended December 31, 2021 and 2020 , the Company recorded $0.7 million each year as rent expense to the right-of-use assets.

Lease liability is summarized below (in thousands):


	As of December 31, 2021		As of December 31, 2020
Total lease liability	$	1,751	$	2,104
Less: short term portion	(643)		(647)
Long term portion	$	1,108	$	1,457

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


Year ending December 31, 2022	$	733
Year ending December 31, 2023	471
Year ending December 31, 2024	378
Year ending December 31, 2025	258
Year ending December 31, 2026	103
Total	$	1,943
Less: Present value discount	(192)
Lease liability	$	1,751

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 December 31, 2021, the weighted average remaining lease term is 3.35 and the weighted average discount rate used to determine the operating lease liabilities was 8.0%.