As described in “Note 3 - Accounting Standards” the Company adopted ASC 842, Leases, on January 1, 2022. Prior periods presented have not been adjusted and continue to be reported in accordance with the legacy guidance in ASC 840, Leases. The Company’s capital lease assets and related accumulated amortization were recorded as property and equipment and the capital lease liabilities were recorded as current and long-term capital lease obligations on the condensed consolidated balance sheet as of December 31, 2021. See “Note 5 - Property and Equipment, Net” and “Note 11 - Debt” regarding disclosure of capital leases.

The Company has operating and financing leases for office facilities, light duty vehicles, tractors and pressure pumping equipment, including power generation equipment. The Company does not have any material lessor arrangements.

The weighted average remaining lease term and discount rates used in the measurement of the Company’s right-of-use assets and lease liabilities are as follows:


		June 30, 2022
Weighted average remaining lease term:
Operating leases		1.9 years
Finance leases		3.0 years
Weighted average discount rate:
Operating leases		9.6%
Finance leases		7.4%

The components of lease expense consisted of the following:


	Three Months Ended		Six Months Ended
	June 30, 2022		June 30, 2022
Operating lease expense	$	1,725	$	2,041
Short-term lease expense		9,981		19,249
Finance lease expense:
Amortization of right-of-use assets		312		620
Interest on lease liabilities		63		141
Total	$	12,081	$	22,051

In accordance with prior guidance rent expense was $0.3 million and $0.6 million for the three and six months ended June 30, 2021, respectively, of which $0.2 million and $0.5 million, respectively, was recorded as cost of services and $0.1 million and $0.1 million, respectively, was recorded as selling, general and administrative expenses in the condensed consolidated statements of operations.

Supplemental cash flow information related to leases is as follows:


	Six Months Ended
	June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Payments on operating lease included in operating cash flows	$	1,896
Interest payments on finance leases included in operating cash flows	$	133
Principal payments on finance leases included in financing cash flows	$	560
Right-of-use assets upon adoption of ASC 842 and obtained in exchange for new lease liabilities
Operating leases	$	19,935
Finance leases	$	3,893

As of June 30, 2022, the future maturities of lease liabilities are as follows:


Fiscal Year	Operating Leases			Finance Leases
Remainder of 2022	$	5,718		$	782
2023		10,346			1,080
2024		3,968			1,080
2025		67			621
2026		-			40
Thereafter		-			16
Total lease payments		20,099			3,619
Less: imputed interest		(1,746	)		(275	)
Total lease liabilities	$	18,353		$	3,344

In addition, the Company entered into agreements for additional power generation services and equipment. Such long-term operating leases commenced upon the delivery of the equipment, which occurred during the early part of the third quarter of 2022.

As of December 31, 2021, in accordance with prior guidance the minimum future payments on non-cancellable operating leases and capital leases are as follows:


Fiscal Year	Operating Leases		Capital Leases
2022	$	1,107	$	1,241
2023		308		896
2024		258		891
2025		67		447
Total	$	1,740	$	3,475

In October 2021, the Company completed a sale-leaseback transaction for a short-term operating lease. The Company deferred a $7.4 million gain from disposal of assets to accrued expenses and other current liabilities to amortize over the minimum term of the lease. As of June 30, 2022 and December 31, 2021, the remaining deferred gain on the sale-leaseback transaction was $1.9 million and $5.6 million, respectively.