Leases

6 Months Ended

Jun. 30, 2023

A major part of the Company's lease obligations is for office real estate. The Company may also lease corporate apartments, cars and office equipment. Payments on some of our leases may depend on index or rate, including Consumer Price Index. Such payments are included in the calculation of lease liability and assets at the commencement dates, all future changes are accounted as variable payments similar to other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost.

The Company’s leases have remaining lease terms ranging from 0.4 to 4.8 years. Certain lease agreements may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancellable only by the payment of penalties. The Company includes these options in the lease term when it is reasonably certain that they will be exercised.

As of June 30, 2023 and December 31, 2022, the Company had no finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. During the three and six months ended June 30, 2023 and June 30, 2022 lease costs were as follows:


	Three months ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Operating lease cost	$	939	$	858	$	1,720	$	1,552
Variable lease cost	68		(96)		262		(72)
Short-term lease cost	98		28		196		267
Total lease cost	$	1,105	$	790	$	2,178	$	1,747

Supplemental information related to operating lease transactions is as follows:


	Three months ended March 31,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Lease liability payments	$	913	$	752	$	1,640	$	1,618
Lease assets obtained in exchange for liabilities	$	3,614	$	1,514	$	4,636	$	1,514
Non-cash net change in lease assets due to lease modifications	$	26	$	(858)	$	26	$	(886)
Non-cash net change in lease liability due to lease modifications	$	(26)	$	858	$	(26)	$	886

Weighted average remaining lease term and discount rate as of June 30, 2023 is as follows:


	As of
	June 30, 2023		December 31, 2022
Weighted average remaining lease term, in years	3.6		2.8
Weighted average discount rate	6.4	%	4.7	%

As of June 30, 2023, operating lease liabilities will mature as follows:


Years ending December 31, (in thousands)	Lease Payments
2023 (excluding six months ended June 30, 2023)	$	2,121
2024	4,060
2025	3,092
2026	2,219
2027	1,844
2028	89
Total lease payments	13,425
Less: imputed interest	(1,589)
Total	$	11,836

There were no material lease agreements signed with related parties as of June 30, 2023 and December 31, 2022.