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LEASES
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
LEASES LEASES
The Company determines if an arrangement is a lease at inception and whether the arrangement is classified as an operating or finance lease. At commencement of the lease, the Company records a right-of-use (“ROU”) asset and lease liability in the consolidated balance sheets based on the present value of lease payments over the term of the arrangement. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As the Company’s leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company determines its incremental borrowing rate based on publicly available data for instruments with similar characteristics, including recently issued debt, as well as other factors. Contract terms may include options to extend or terminate the lease, and when the Company deems it reasonably certain that ESS will exercise that option it is included in the ROU asset and lease liability. Operating leases will reflect lease expense on a straight-line basis, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization expense of the ROU asset.
ROU assets related to the Company’s operating leases are included in operating lease ROU assets, while the corresponding lease liabilities are included in current and non-current operating lease liabilities on our consolidated balance sheets. ROU assets related to the Company’s finance leases are included in other non-current assets, while the corresponding lease liabilities are included in accrued and other current liabilities and other non-current liabilities on the Company’s consolidated balance sheets.
The Company does not record leases with a term of 12-months or less in the consolidated balance sheets. There was no short-term lease cost for the three months ended March 31, 2022.
The Company leases office and manufacturing space in Wilsonville, Oregon under operating leases and printers and copiers under finance leases. Each of the operating leases provides the Company an option to renew the lease for an additional 60 months which have not been included in the operating lease obligations.
Operating lease costs for the three months ended March 31, 2022 were $371 thousand. As of March 31, 2022, the weighted-average remaining term for the operating leases was 3.4 years and the weighted-average discount rate was 7.5%. The weighted-average remaining term for the finance lease was 4.9 years and the weighted-average discount rate was 7.5%.
As of March 31, 2022 future maturities of lease liabilities are as follows (in thousands):
Operating LeasesFinance Leases
2022$1,222 $21 
20231,670 30 
20241,720 30 
2025983 30 
2026— 30 
Thereafter— 7 
Total minimum lease payments$5,595 $148 
Less imputed interest(673)(25)
Total$4,922 $123 
LEASES LEASES
The Company determines if an arrangement is a lease at inception and whether the arrangement is classified as an operating or finance lease. At commencement of the lease, the Company records a right-of-use (“ROU”) asset and lease liability in the consolidated balance sheets based on the present value of lease payments over the term of the arrangement. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As the Company’s leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company determines its incremental borrowing rate based on publicly available data for instruments with similar characteristics, including recently issued debt, as well as other factors. Contract terms may include options to extend or terminate the lease, and when the Company deems it reasonably certain that ESS will exercise that option it is included in the ROU asset and lease liability. Operating leases will reflect lease expense on a straight-line basis, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization expense of the ROU asset.
ROU assets related to the Company’s operating leases are included in operating lease ROU assets, while the corresponding lease liabilities are included in current and non-current operating lease liabilities on our consolidated balance sheets. ROU assets related to the Company’s finance leases are included in other non-current assets, while the corresponding lease liabilities are included in accrued and other current liabilities and other non-current liabilities on the Company’s consolidated balance sheets.
The Company does not record leases with a term of 12-months or less in the consolidated balance sheets. There was no short-term lease cost for the three months ended March 31, 2022.
The Company leases office and manufacturing space in Wilsonville, Oregon under operating leases and printers and copiers under finance leases. Each of the operating leases provides the Company an option to renew the lease for an additional 60 months which have not been included in the operating lease obligations.
Operating lease costs for the three months ended March 31, 2022 were $371 thousand. As of March 31, 2022, the weighted-average remaining term for the operating leases was 3.4 years and the weighted-average discount rate was 7.5%. The weighted-average remaining term for the finance lease was 4.9 years and the weighted-average discount rate was 7.5%.
As of March 31, 2022 future maturities of lease liabilities are as follows (in thousands):
Operating LeasesFinance Leases
2022$1,222 $21 
20231,670 30 
20241,720 30 
2025983 30 
2026— 30 
Thereafter— 7 
Total minimum lease payments$5,595 $148 
Less imputed interest(673)(25)
Total$4,922 $123