Leases

9 Months Ended

Sep. 30, 2023

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

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 $9,105 per month.

The Company entered into two new operating leases for its administrative office in Hyderabad, India and Manila, Philippines. The Hyderabad, India and Manila, Philippines office lease expires on March 25, 2025 and May 14, 2025, respectively.

The Company early terminated one of its administrative offices in Hyderabad, India which generated an immaterial gain on lease termination which is included in the operating expenses section of the Condensed Consolidated Statements of Operations.

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 September 30, 2023		As of December 31, 2022
Palo Alto, CA Office	$	630	$	630
Hyderabad, India Office	19		—



Ratingen, Germany Office	84		85
Berlin, Germany Office	500		508

Frankfurt, Germany Office	291		294

Less accumulated amortization	(1,148)		(986)
Right-of-use asset, net	$	376	$	531

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 condensed consolidated statement of income for the three months ended September 30, 2023 and 2022 was $0.2 million and $0.1 million, respectively, and for the nine months ended September 30, 2023 and 2022 was $0.5 million and $0.5 million, respectively.

Lease liability is summarized below (in thousands):


	As of September 30, 2023		As of December 31, 2022
Total lease liability	$	386	$	545
Less: short term portion	(198)		(211)
Long term portion	$	188	$	334

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


Three months ending December 31, 2023	$	53
Year ending December 31, 2024	210
Year ending December 31, 2025	107
Year ending December 31, 2026	40
Year ending December 31, 2027	—
Year ending December 31, 2028 and thereafter	—
Total	$	410
Less: Present value discount	(24)
Lease liability	$	386

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 September 30, 2023, the weighted average remaining lease term is 2.2 years and the weighted average discount rate used to determine the operating lease liabilities was 3.9%.