Leases

3 Months Ended

Mar. 31, 2023

The components of lease expense consisted of the following for the three months ended March 31, 2023:


	Three Months Ended March 31, 2023
In thousands	Third Party		Related Party		Total
Finance lease costs:
Amortization of right-of-use assets	$	885	$	—	$	885
Interest on lease liabilities	88		—		88
Operating lease costs	716		98		814
Short-term lease costs	27		67		94
Variable lease costs	144		—		144
Sublease income	(129)		—		(129)
Total lease costs	$	1,731	$	165	$	1,896

Lease-related assets and liabilities recorded on the consolidated balance sheet are as follows:


	March 31, 2023						December 31, 2022
In thousands	Third Party		Related Party		Total		Third Party		Related Party		Total
Assets
Finance lease right-of-use assets (included in property and equipment, net)	$	5,546	$	—	$	5,546	$	5,916	$	—	$	5,916
Operating lease right-of-use assets	5,331		1,313		6,644		5,819		1,394		7,213
Total leased assets	$	10,877	$	1,313	$	12,190	$	11,735	$	1,394	$	13,129

Liabilities
Lease liabilities, current:
Finance lease liabilities	$	2,936	$	—	$	2,936	$	3,023	$	—	$	3,023
Operating lease liabilities	2,045		336		2,381		2,130		322		2,452
Lease liabilities, current	4,981		336		5,317		5,153		322		5,475

Lease liabilities, noncurrent:
Finance lease liabilities	2,813		—		2,813		2,976		—		2,976
Operating lease liabilities	4,235		1,002		5,237		4,672		1,093		5,765
Lease liabilities, noncurrent	7,048		1,002		8,050		7,648		1,093		8,741
Total leased liabilities	$	12,029	$	1,338	$	13,367	$	12,801	$	1,415	$	14,216

Accumulated amortization related to the finance lease assets was $4.8 million and $3.9 million as of March 31, 2023 and December 31, 2022, respectively.

The following table summarizes our lease term and discount rate assumptions as of March 31, 2023:


	March 31, 2023
	Third Party	Related Party	Total
Weighted-average remaining lease term (years):
Finance leases	1.94	—	1.94
Operating leases	3.47	3.67	3.50

Weighted-average discount rate:
Finance leases	6.3%	—	6.3%
Operating leases	6.8%	5.3%	6.5%

Undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year, as of March 31, 2023, have been reconciled to the total operating and finance lease liabilities recognized on the condensed consolidated balance sheets as of March 31, 2023 as follows:


	March 31, 2023
	Finance Leases						Operating Leases
In thousands	Third Party		Related Party		Total		Third Party		Related Party		Total
Remaining 2023	$	2,495	$	—	$	2,495	$	1,922	$	291	$	2,213
2024	2,526		—		2,526		1,930		421		2,351
2025	1,060		—		1,060		1,535		427		1,962
2026	—		—		—		1,029		323		1,352
2027	—		—		—		457		—		457
Thereafter	—		—		—		380		—		380
Total lease payments	6,081		—		6,081		7,253		1,462		8,715
Less: Interest	332		—		332		973		124		1,097
Present value of lease liabilities	$	5,749	$	—	$	5,749	$	6,280	$	1,338	$	7,618

Prior to the adoption of ASC 2016-02, Leases, the following was disclosed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2022:

Total rent expense under related party and third-party agreements was approximately $0.2 million and $1.2 million, respectively, for the three months ended March 31, 2022.

Total sublease revenue under third-party agreements was approximately $0.2 million for the three months ended March 31, 2022.

During the three months ended March 31, 2022, we recorded additional lease abandonment expense totaling $0.1 million related to a termination fee we paid to exit an office lease.

Leases