The Company has operating lease commitments for real estate and certain equipment in the United States, the United Kingdom, the Republic of Ireland and Switzerland. There are no sublease agreements in place. The Company has finance lease commitments for equipment in the United Kingdom and Switzerland.

The Company leases an 87,200 square foot conventional reagents manufacturing facility, the ARC facility, with integrated offices and laboratories, in Edinburgh, Scotland. This lease commenced in March 2018, following completion of a sale and leaseback transaction, and expires in September 2052. Rent is recognized in the consolidated statement of comprehensive loss on a straight-line basis over the lease term. Additionally, the lease required the Company to provide a rent deposit of £3.6 million, which amounted to $4.7 million at March 31, 2022 and $5.0 million at March 31, 2021, and is included within other non-current assets in the consolidated balance sheets. In March 2015, the Company signed a five-year lease agreement for its MosaiQ manufacturing facility and corporate headquarters in Eysins, Switzerland. This lease was extended for a further five-year period to March 14, 2025 and allows for the option to extend this lease through March 14, 2030. Our calculation of the right of use asset assumes the extension in March 14, 2025 is reasonably certain to be exercised. In March 2022, the Company signed an eight-year lease in Eysins, Switzerland next to our manufacturing facility for its corporate headquarters. The Company also leases office space for commercial and development activities under a one-year lease agreement in Newtown, PA.

The operating lease commitments relating to equipment are not material. The finance lease commitments relate to specialized equipment required for manufacturing operations in both Edinburgh, Scotland and Eysins, Switzerland.

Many of the Company’s leases contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s balance sheet are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain not to exercise. The Company does not have any existing lease agreements with variable lease components.

In calculating the present value of future lease payments, the Company has elected to utilize its incremental borrowing rate based on the remaining lease term at the date of adoption. Incremental borrowing rates are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company has elected to account for each lease component and its associated non-lease component as a single lease component and has allocated all the contract consideration across the lease component only. As of March 31, 2022, an operating lease right-of-use asset of $29,411 and an operating lease liability of $32,288 (including a current portion of $3,535) were reflected on the consolidated balance sheet. As of March 31, 2021, an operating lease right-of-use asset of $22,011 and an operating lease liability of $24,354 (including a current portion of $3,446) were reflected on the consolidated balance sheet. As of March 31, 2022, the Company had entered into finance leases for the purchase of plant and equipment that had net book values of $908. An associated finance lease liability of $925 (including a current portion of $537) was reflected on the consolidated balance sheet. As of March 31, 2021, the Company had entered into finance leases for the purchase of plant and equipment that had net book values of $1,384. An associated finance lease liability of $1,280 (including a current portion of $835) was reflected on the consolidated balance sheet.

The elements of lease expense were as follows:


	Year ended March 31,
	2022		2021
Operating lease cost	$	4,705	$	4,414
Finance lease cost
Amortization of right-of-use asset		826		998
Interest on lease liabilities		147		129
Short-term lease cost		94		62
Total lease cost	$	5,772	$	5,603

Other information related to leases was as follows:


	Year ended March 31,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities
Operating leases - operating cash flows	$	4,311		$	3,793
Finance leases - financing cash flows	$	713		$	633
Finance leases - operating cash flows	$	147		$	129
Non-cash leases activity
Right-of-use assets obtained in exchange for new operating lease liabilities	$	9,969		$	332
Right-of-use assets obtained in exchange for new finance lease liabilities	$	594		$	130
Weighted average remaining lease terms (in years)
Operating leases		25.8			29.5
Finance leases		3.5			1.6
Weighted average discount rate
Operating leases		10.6	%		10.9	%
Finance leases		6.4	%		9.1	%

Future lease payments required under non-cancellable operating leases in effect as of March 31, 2022 were as follows:


	March 31, 2022
2023	$	3,932
2024		4,362
2025		4,409
2026		4,466
2027		4,524
Thereafter		73,702
Total lease payments	$	95,395
Less : imputed interest		(63,107	)
Total operating lease liabilities	$	32,288

Future lease payments required under finance leases in effect as of March 31, 2022 were as follows:


	March 31, 2022
2023	$	618
2024		337
2025		59
2026		23
2027		—
Thereafter		1,037
Total lease payments		1,037
Less : imputed interest		(112	)
Total finance lease liabilities	$	925