LEASES

6 Months Ended

Jun. 30, 2023

The Company leases space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, it applies a portfolio approach for determining the incremental borrowing rate.

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating lease cost	$	1,252	$	710	$	1,740	$	1,357
Short-term lease cost	310		213		592		388
Lease cost	$	1,562	$	923	$	2,332	$	1,745

Supplemental cash flow information related to operating leases was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	1,562	$	923	$	2,332	$	1,745

As of June 30, 2023, maturities of outstanding lease liabilities for all operating leases were as follows:


	December 31,
remainder of 2023	$	1,952
2024	2,741
2025	1,228
2026	1,134
2027	1,131
2028	594
Total lease payments	$	8,780
Less: Interest	(971)
Present value of lease liabilities	$	7,809

The weighted average remaining lease terms and discount rates for all operating leases were as follows:


	June 30, 2023		December 31, 2022
Remaining lease term and discount rate:
Weighted average remaining lease term (years)	3.77		2.00
Weighted average discount rate	3.94	%	4.25	%