The Company has 25,445 square feet of office space on High Street in Boston, Massachusetts (“High Street Sublease”) expiring December 31, 2025. The term of the sublease extends from April 1, 2021 through December 31, 2025 and provides for escalating annualized base rent payments starting at approximately $1.5 million and increasing to $1.6 million in the final year of the sublease.

The Company also has office space at 33 Arch Street in Boston, MA ("Arch Street Lease"), which expires in December 2023, as amended. The associated space is entirely subleased to third parties through the remainder of the current lease term ("Arch Street Subleases"). We additionally have office space in Carmel, IN.

For each of the lease agreements entered into or modified, the Company identified certain non-lease components. Lease and non-lease components were combined into a single lease component. In addition, all identified leases were assessed as operating leases.

As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a term equal to the lease payments in a similar economic environment, in determining the present value of lease payments for each identified lease at the lease commencement date.

The components of lease cost were as follows (dollar amounts in thousands):


	Three Months Ended March 31,
	2023			2022
Lease Cost
Operating lease cost	$	538		$	538
Short-term lease cost		—			—
Sublease income		(147	)		(139	)
Total lease cost	$	391		$	399

Other Information
Cash paid for amounts included in the measurement of lease liabilities	$	641		$	631
Weighted-average remaining lease term	2.46 years			3.28 years
Weighted-average discount rate		5.85	%		5.89	%

The following is a maturity analysis of the remaining annual undiscounted cash flows of the operating lease liabilities and a reconciliation to present value of lease liabilities as of March 31, 2023 (in thousands):


Year ended:
December 31, 2023	$	1,879
December 31, 2024		1,597
December 31, 2025		1,622
Total future minimum lease payments		5,098
Less imputed interest		(339	)
Present value of lease liabilities	$	4,759

The annual undiscounted cash flows to be received from subleases is $0.5 million as of March 31, 2023. The Arch Street Lease and Arch Street Subleases mature in December 2023 and will not be extended.

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may incur charges in the future as a result of these indemnification obligations.

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated.

The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities as of March 31, 2023.