Leases

9 Months Ended

Sep. 30, 2022

LeasesThe 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 unaudited condensed consolidated statements of operations. Additional information regarding the Company's operating leases is as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
(in thousands)	2022	2021	2022	2021
Operating Lease Cost
Operating leases	$453	$546	$1,450	$1,649
Short-term leases (1)	339	318	966	732
Total lease expense	$792	$864	$2,416	$2,381

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

Other information on operating leases:


	Nine Months Ended September 30,
	2022		2021
Cash payments included in operating cash flows	$1,407		$1,689
Right-of-use assets obtained in exchange for new lease	$2,885		$1,665
Weighted average discount rate	7.71	%	8.39	%
Weighted average remaining lease term in years	5.9 years		5.5 years

The following table presents the contractual maturities of the Company's lease liabilities as of September 30, 2022.


(in thousands)			Lease Liability
Remainder of 2022			$470
2023			1,698
2024			1,467
2025			1,281
2026			1,180
Thereafter			2,685
Total undiscounted lease payments			8,781
Less: present value adjustment			1,714
Operating lease liability			$7,067