Leases

3 Months Ended

Mar. 31, 2021

The Company enters into lease agreements for certain facilities and vehicles that are primarily used in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease.

Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company's discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, uses the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

Lease expense is primarily included in general and administrative expenses in the condensed consolidated statements of operations. Additional information regarding the Company's operating leases is as follows:


(in thousands)	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating Lease Cost
Operating leases	$	555	$	606
Short-term leases (1)	190		87
Total lease expense	$	745	$	693

(1) Leases with an initial term of twelve months or less are not recorded on the balance sheet.

Other information on operating leases:


	Three months ended March 31, 2021		Three months ended March 31, 2020
Cash payments included in operating cash flows	601		521
Right-of-use assets obtained in exchange for new lease	123		21
Weighted average discount rate	8.77	%	9.33	%
Weighted average remaining lease term in years	4.50		5.30

The following table presents the contractual maturities of the Company's lease liabilities as of March 31, 2021.


(in thousands)	Lease Liability
Remainder of 2021	$	1,596
2022	1,804
2023	1,438
2024	757
2025	559
Thereafter	1,177
Total undiscounted lease payments	7,331
Less: present value adjustment	1,594
Operating lease liability	$	5,737