Leases

9 Months Ended

Sep. 30, 2022

The Company leases real estate for office space under operating leases.

As of September 30, 2022, the remaining lease terms varied from 0.3 years to 2.8 years. For certain leases, the Company has an option to extend the lease term for a period of 5 years. This renewal option is not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.

Operating lease expense, included in rent and occupancy in the unaudited condensed consolidated statements of operations, for the three and nine months ended September 30, 2022 was $0.9 million and $2.8 million, respectively. Operating lease expense for the three and nine months ended September 30, 2021 was $0.8 million and $2.5 million, respectively. Variable lease payments for three and nine months ended September 30, 2022 were $0.2 million and $0.6 million, respectively. Variable lease payments for the three and nine months ended September 30, 2021 were immaterial. Sublease income of $0.2 million and $0.5 million for the three and nine months ended September 30, 2022, respectively, and sublease income of $0.1 million and $0.1 million for the three and nine months ended September 30, 2021, respectively, was included in other income, net in the unaudited condensed consolidated statements of operations.

The table below presents additional information related to the Company’s operating leases (in thousands):


	September 30, 2022			December 31, 2021

Operating lease right-of-use assets	$	3,794		$	7,881
Operating lease liabilities, current	$	3,819		$	5,367
Operating lease liabilities, noncurrent	$	1,785		$	5,159
Weighted-average remaining lease term (in years)	1.7			2.2
Weighted-average discount rate	4.7		%	4.9		%

Future undiscounted lease payments under operating leases as of September 30, 2022 were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation

Remainder of 2022	$	1,351	$	(226)	$	1,125
2023	3,170		(768)		2,402
2024	932		(360)		572
2025	381		(210)		171
2026	—		—		—
Total undiscounted lease payments	$	5,834	$	(1,564)	$	4,270
Less: Imputed interest	(230)
Present value of future lease payments	5,604
Less: operating lease liabilities, current	3,819
Operating lease liabilities, noncurrent	$	1,785

As of September 30, 2022, the Company did not have any additional significant lease contracts that had not yet commenced.

During the nine months ended September 30, 2022, the Company ceased using one of its leased office spaces and made a decision to sublease this space to a third party. The sublease agreement was signed in April 2022. Based on the terms of the sublease agreement, the Company determined that the right-of-use asset related to this office space is impaired, and recorded an impairment loss of $0.3 million for the nine months ended September 30, 2022 in rent and occupancy in the unaudited condensed consolidated statements of operations.