At the inception of an arrangement, we determine if an arrangement is, or contains, a lease based on the facts and circumstances present in that arrangement. Lease classification, recognition, and measurement are then determined at the lease commencement date. For arrangements that contain a lease we i) identify lease and non-lease components, ii) determine the consideration in the contract, iii) determine whether the lease is an operating or financing lease; and iv) recognize lease ROU assets and liabilities. Lease liabilities and their corresponding ROU assets are recorded based on the present value of fixed, or in substance fixed, lease payments over the expected lease term. When the interest rate implicit in lease contracts is not readily determinable we use our incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on our operating lease liabilities as of June 30, 2022 was 4.00%.

We have operating leases for approximately nine thousand square feet of corporate office space. We have elected to combine lease components with non-lease components on our office real estate asset class. Fixed, or in substance fixed, lease payments on operating leases are recognized over the expected term of the lease on a straight-line basis. Variable lease expenses that are not considered fixed, or in substance fixed, are recognized as incurred. Fixed and variable lease expense on operating leases is recognized within operating expenses within our condensed consolidated statements of operations and comprehensive loss. Some leases include options to extend or terminate the lease and the Company includes these options in the recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise such options. We have elected the short-term lease exemption and, therefore, do not recognize a ROU asset or corresponding liability for lease arrangements with an original term of 12 months or less. The weighted average remaining lease term is 3.0 years.

Operating leases are included in ROU operating assets, other current liabilities, and noncurrent operating lease liabilities in our condensed consolidated balance sheets as of June 30, 2022.

The following table summarizes the presentation of the Company's operating lease as presented on the condensed consolidated balance sheets:


(in thousands)	JUNE 30, 2022
Assets:
Operating lease right-of-use assets	$	613
Liabilities:
Operating lease liabilities	$	150
Operating lease liabilities, noncurrent		478
Total operating lease liabilities	$	628

Future minimum lease payments from June 30, 2022 until the expiration of the operating lease are as follows:


(in thousands)
2022	$	86
2023		200
2024		230
2025		156
Thereafter		—
Total lease payments		672
Less: imputed discount rate		(44	)
Carrying value of operating lease liabilities	$	628

The Company incurred $51 thousand and $28 thousand in operating lease rent expense for the three months ended June 30, 2022 and 2021, respectively and $102 thousand and $54 thousand for the six months ended June 30, 2022 and 2021, respectively. Lease payments made were $43 thousand and $20 thousand for the three months ended June 30, 2022 and 2021, respectively and $87 thousand and $39 thousand for the six months ended June 30, 2022 and 2021, respectively, with such amounts reflected in the condensed consolidated statements of cash flows in operating activities.

As the result of adopting ASU 2016-02 Leases using the modified retrospective transition method, we did not restate periods prior to the adoption date of January 1, 2022. These periods continue to be presented in accordance with ASC 840. As of December 31, 2021, the future undiscounted minimum lease payments on our operating leases was as follows:


YEAR ENDING DECEMBER 31,
(in thousands)
2022	$	170
2023		195
2024		230
2025		176
Thereafter		—
	$	771