In November 2022, the Company entered into a long-term lease agreement for new office space in New York, NY. This operating lease expires two years from the rent commencement date and has the option to be renewed for an additional year. The Company recognizes ROU lease asset and lease liability based on the present value of the future minimum lease payments at the lease commencement date. The Company did not include the renewal options as part of the ROU lease asset and lease liability at the commencement date as it was not reasonably certain that the renewal option will be exercised. The Company used incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date in determining the present value of future payments. As of March 31, 2023 the weighted-average remaining lease term was 1.83 years and weighted-average discount rate was 7.17%. As of March 31, 2023 and December 31, 2022, the ROU lease asset was of $0.4 million and is included within the "Other assets" line item in the condensed consolidated balance sheet. As of March 31, 2023 and December 31, 2022, the short-term portion of the lease liability was $0.2 million and is included within the "Accrued expenses and other current liabilities" line item in the condensed consolidated balance sheet. As of March 31, 2023 and December 31, 2022, the long-term portion of the lease liability was $0.2 million and $0.3 million, respectively, and is included within the "Other liabilities" line item in the condensed consolidated balance sheet. Operating lease cost recognized for the three months ended March 31, 2023 was $0.1 million.

In addition, the Company's wholly owned subsidiary, Groop Internet Platform LTD, located in Israel, leases its operating facilities under a month-to-month operating lease agreement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes rent expense for these leases on a straight-line basis over the lease term.

The following table outlines the maturities of the Company’s lease liabilities as of March 31, 2023:


	March 31, 2023
In thousands	unaudited
The remainder of 2023	$	203
2024		270
2025		22
Total undiscounted lease payments	$	495
Less interest		(29	)
Present value of operating lease liability	$	466