Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

The Company entered into agreements to lease office space in Oakwood Village, Ohio, Mountain View, California and Denver, Colorado under noncancelable operating lease agreements. The table below summarizes the Company’s office space leases:


	Approximate Square Footage	Lease Expiration
Oakwood Village, Ohio	19,800	October 2026
Mountain View, California	25,500	July 2025
Mountain View, California	24,600	December 2025
Denver, Colorado	12,800	October 2024

In recognition of the ROU assets and the related lease liabilities, the options to extend the lease term have not been included as the Company is not reasonably certain that it will exercise any such option.

In recognition of the right-of-use assets and the related lease liabilities, the option to extend the lease term has not been included as the Company is not reasonably certain that it will exercise any such option. At December 31, 2022, the weighted-average remaining lease term in years is 2.7 years and the weighted-average discount rate used is 7.6%. The Company recognized of $2.3 million, $2.8 million, and $3.1 million lease costs arising from lease transactions for the years December 31, 2022, 2021 and 2020, respectively.

During the years ended December 31, 2022, 2021, and 2020, the Company recognized the following cash flow transactions arising from lease transactions (in thousands):


	For the Year Ended December 31,
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities	$	2,261	$	2,848	$	3,145
Right-of-use assets obtained in exchange for new operating lease liabilities	—		1,693		643

At December 31, 2022, the future payments and interest expense for the operating leases are as follows (in thousands):


Year Ended December 31,	Future Payments
2023	$	3,357
2024	3,301
2025	2,096
2026	146
Thereafter	—
Total undiscounted cash flows	$	8,900
Less: imputed interest	(835)
Present value of lease liabilities	$	8,065

Sublease

In March 2022, the Company entered into an agreement to sublease all 24,600 rentable square feet of one of its Mountain View, California office spaces to a subtenant to offset its cash outflow. The sublease commenced on May 2, 2022 and will expire on March 31, 2024, unless earlier terminated in accordance with the sublease agreement.

Sublease income is recognized on a straight-line basis over the term of the sublease agreement and is recorded separately from the related rent expense from the Mountain View, California office space within interest and other income, net in the consolidated statements of operations and comprehensive loss. The sublease provides for annual base rent of approximately $0.5 million in the first year (subject to an abatement of base rent for the first two months of the sublease) and approximately $0.6 million in the second year. The sublessee is responsible for its pro rata share of certain costs, taxes and operating expenses related to the subleased space, the consideration for which is variable and recorded net of the Company’s operating costs in the office space. Variable lease consideration that does not depend on an index or rate is allocated to a non-lease component and is recognized over time in accordance with the pattern of transfer. The variable consideration relates exclusively to non-lease components representing such services and will be recognized as incurred. For the year ended December 31, 2022, gross sublease income of $0.4 million was recorded.

Legal Proceedings

In the normal course of business, the Company may become involved in legal proceedings. The Company will accrue a liability for legal proceedings when it is probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued.

Purchase Commitments

At December 31, 2022, the Company had $15.6 million in outstanding firm purchase commitments.