We account for leases in accordance with ASC 842, Leases, which requires lessees to recognize lease liabilities and ROU assets on the balance sheet for most operating leases. We made the accounting policy election not to apply the recognition provisions of ASC 842 to short-term leases which are leases with a lease term of 12 months or less. Instead, we recognize the lease payments for short-term leases on a straight-line basis over the lease term. We currently do not have any short-term leases.

Operating lease liabilities reflect our obligation to make future lease payments for real estate locations. Lease terms are comprised of contractual terms. Payments are discounted using the rate we would pay to borrow amounts equal to the lease payments over the lease term (our incremental borrowing rate). We do not separate lease and non-lease components for contracts in which we are the lessee. ROU assets are measured based on lease liabilities adjusted for incentives and timing differences between operating lease expense and payments, recognized on a straight-line basis over the lease term. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Common area maintenance and other executory costs are the main components of variable lease payments. Operating and variable lease expenses are recorded in general and administrative expense in the Condensed Consolidated Statements of Operations.

We lease our primary office space under non-cancelable operating leases with various expiration dates through June 2030. Many of our leases have an option to be extended from two to five years, and several of the leases give us the right to cancel early with proper notification. Additionally, we have a sublease on one of our office leases.

Several of the operating lease agreements require us to provide security deposits. As of May 31, 2022, and February 28, 2022, lease deposits were $4.2 million and $3.6 million, respectively. The deposits are generally refundable at the expiration of the lease, assuming all obligations under the lease agreement have been met. Deposits are included in prepaid and other current assets and other noncurrent assets in the Condensed Consolidated Balance Sheets.

We lease vehicles under non-cancelable operating lease arrangements which have various expiration dates through June 2025. We do not have the right to purchase the vehicles at the end of the lease term.

We purchase certain equipment under non-cancelable financing lease arrangements which are primarily related to software and computer equipment and which have various expiration dates through October 2023. We have the right to purchase the software and computer equipment anytime during the lease or upon lease completion.

The following tables presents the amounts and classifications of our estimated ROU assets, net and lease liabilities:


($ in thousands)	Balance Sheet Location	May 31, 2022		February 28, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	28,761	$	28,102
Finance lease right-of-use asset	Property and equipment, net		3,108		3,719
Total right-of-use assets		$	31,869	$	31,821


($ in thousands)	Balance Sheet Location	May 31, 2022		February 28, 2022
Operating lease liability - current	Current portion of operating lease obligations	$	8,240	$	7,652
Operating lease liability	Operating lease obligations		21,652		21,202
Finance lease liability - current	Current portion of finance lease obligations		2,206		2,307
Finance lease liability	Finance lease obligations		1,882		1,950
Total lease liabilities		$	33,980	$	33,111

The following table summarizes our total lease cost:


	Three Months Ended May 31,
($ in thousands)	2022			2021
Finance lease cost:
Amortization of right-of-use asset	$	611		$	1,193
Interest on lease liability		70			130
Finance lease cost		681			1,323
Operating lease cost:
Operating lease cost		1,372			1,349
Variable lease cost		2,096			801
Sublease income		(228	)		(174	)
Operating net lease cost		3,240			1,976
Total net lease cost	$	3,921		$	3,299

Supplemental cash flow information related to leases was as follows:


	Three Months Ended May 31,
($ in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	2,712	$	1,313

The following table presents the weighted-average remaining lease terms and discount rates of our leases:


	Three Months Ended May 31,
	2022			2021
Weighted-average remaining lease term (in years):
Finance lease		1.14			1.82
Operating lease		6.42			5.27
Weighted-average discount rate:
Finance lease		9.20	%		9.20	%
Operating lease		5.23	%		4.39	%

The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities as of May 31, 2022:


($ in thousands)	Operating Leases			Finance Leases
June 2022 - February 2023	$	7,593		$	2,146
2024		8,520			2,105
2025		6,612			—
2026		4,386			—
2027		3,347			—
Thereafter		2,878			—
Total		33,336			4,251
Less: Present value discount		(3,444	)		(163	)
Lease liabilities	$	29,892		$	4,088