Leases

3 Months Ended

Mar. 31, 2022

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 $2,789 and $1,122 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 are summarized below (in thousands):


	As of March 31, 2022		As of December 31, 2021
Palo Alto, CA Office	$	631	$	631
Hyderabad, India Office	352		359
Coquitlam, Canada Office	98		97
Westminster, Canada Office	—		10
Toronto, Canada Office	611		949
Ratingen, Germany Office	88		90
Berlin, Germany Office	526		536
Slough, United Kingdom Office	—		34
Frankfurt, Germany Office	306		312
Less accumulated amortization	(1,054)		(1,282)
Right-of-use asset, net	$	1,558	$	1,736

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, 2022 and 2021 was $0.4 million and $0.3 million, respectively.

Lease liability is summarized below (in thousands):


	As of March 31, 2022		As of December 31, 2021
Total lease liability	$	1,601	$	1,751
Less: short term portion	(619)		(643)
Long term portion	$	982	$	1,108

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


Year ending December 31, 2022	$	566
Year ending December 31, 2023	467
Year ending December 31, 2024	376
Year ending December 31, 2025	258
Year ending December 31, 2026	103
Total	$	1,770
Less: Present value discount	(169)
Lease liability	$	1,601

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 ASC 842, Leases ("ASC 842"). As of March 31, 2022, the weighted average remaining lease term is 3.2 years and the weighted average discount rate used to determine the operating lease liabilities was 6.1%.