Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14. Commitments and Contingencies

Leases

The weighted-average remaining lease terms were 1.9 years and 2.1 years as of December 31, 2022 and 2021, respectively. The weighted-average discount rates were 5.25% and 5.25% as of December 31, 2022 and 2021, respectively. Operating lease costs for the year ended December 31, 2022 and 2021, were $3.3 million and $2.3 million, respectively. The rent expense for the year ended December 31, 2020 was $0.7 million.

Short-term lease costs for the year ended December 31, 2022 and 2021, were $0.1 million and $0.1 million, respectively.

Variable lease costs for the year ended December 31, 2022 and 2021, were $0.5 million and $0.3 million, respectively.

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of December 31, 2022 (in thousands):

	Operating Leases
2023	$	2,977
2024		2,748
2025		1,969
2026		290
Total minimum lease payments		7,984
Less: imputed interest		(528	)
Total lease liability	$	7,456

Litigation

From time to time, the Company is involved in actions, claims, suits and other proceedings in the ordinary course of business, including assertions by third parties relating to intellectual property infringement, breaches of contract or warranties or employment-related matters. When it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated, the Company records a liability for such loss contingencies. The Company’s estimates regarding potential losses and materiality are based on the Company’s judgment and assessment of the claims utilizing currently available information. Although the Company will continue to reassess its reserves and estimates based on future developments, the Company’s objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from the Company’s current estimates.

Indemnifications

In the ordinary course of business, the Company is not subject to potential obligations under guarantees that fall within the scope of FASB ASC Guarantees, (Topic 460), except for standard indemnification provisions that are contained within many of the Company’s customer agreements and give rise only to disclosure requirements prescribed by Topic 460. Indemnification provisions contained within the Company’s customer agreements are generally consistent with those prevalent in the Company’s industry. The Company has not incurred any obligations under customer indemnification provisions and does not expect to incur significant obligations in the future. Accordingly, the Company does not maintain accruals for potential customer indemnification obligations.