Leases

6 Months Ended

Jun. 30, 2023

Leases

Leases

11. LEASES

In June 2018, the Company entered into an operating lease for approximately fifteen thousand square feet of office space in Plymouth Meeting, PA, which expires in May 2024. The Company subsequently entered two separate operating leases for additional office space in Plymouth Meeting, PA, which include approximately thirteen thousand square feet and seven thousand square feet of additional office space, respectively, and expire in May 2024. The terms of the lease payments provide for rental payments on a monthly basis and on a graduated scale. The Company also leases a fleet of automobiles that are used by its sales representatives and are classified as operating leases.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 3 years, some of which may include the option to extend or terminate the leases.

The Company recorded operating lease costs of $444 and $392 for the three months ended June 30, 2023 and 2022, respectively, and $822 and $777 for the six months ended June 30, 2023 and 2022, respectively.

As of June 30, 2023, the weighted-average remaining lease term for operating leases was 1.4 years and the weighted-average discount rate for operating leases was 4.7%.

Supplemental balance sheet information related to operating leases was as follows:

Leases	Classification		June 30, 2023		December 31, 2022
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,057	$	2,312
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,786	$	1,614
Operating lease liability, long-term	Other long-term liabilities		452		975
Total operating lease liabilities		$	2,238	$	2,589

Supplemental cash flow information related to operating leases was as follows:

		June 30, 2023		June 30, 2022
Operating cash flows from operating leases	$	922	$	872
Right of use assets obtained in exchange for operating lease obligations	$	615	$	465

Future payments under noncancelable operating leases with initial terms of one year or more as of June 30, 2023 consisted of the following:

Years ending December 31,
2023 (Excluding the six months ended June 30, 2023)	$	992
2024		1,135
2025		176
2026		20
2027		—
Thereafter		—
Total lease payments		2,323
Less: imputed interest		(85)
Total lease liabilities	$	2,238