Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

13. Leases

The Company leases office facilities from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 5 years. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 10 additional years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.

Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease expense are as follows:

	2022		2021
Operating lease cost	$	2,621	$	2,155
Variable lease cost		254		339
	$	2,875	$	2,494

Prior to the adoption of Topic 842 on January 1, 2021, the Company recognized operating lease costs on a straight-line basis once control of the space was achieved. Rent expense was $1.7 million in 2020.

Supplemental cash flow information related to leases is as follows:

	2022		2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows for operating leases	$	2,082	$	2,141
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	6,835	$	6,365

Supplemental balance sheet information related to leases is as follows:

	December 31,
	2022		2021
Operating lease right-of-use assets	$	4,201	$	4,504
Operating lease liabilities, current(1)	$	1,810	$	1,957
Operating lease liabilities, non-current		2,536		2,694
Total operating lease liabilities	$	4,346	$	4,651

⁽¹⁾ Operating lease liabilities, current are included in accrued expenses and other current liabilities on the consolidated balance sheets.

Other information related to operating leases is as follows:

	December 31,
	2022		2021
Weighted average remaining lease term		2.9 years		2.1 years
Weighted average discount rate		8.8%		9.4 %

Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the balance sheet as of December 31, 2022 is as follows:

	Lease
	Payments
2023	$	2,097
2024		1,516
2025		848
2026		367
2027		29
Thereafter		—
Total lease payments	$	4,857
Less imputed interest		(511)
Total present value of lease liabilities	$	4,346