Leases

3 Months Ended

Mar. 31, 2023

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

As of March 31, 2023, the remaining lease terms varied from 0.5 years to 2.8 years. For certain leases, the Company has an option to extend the lease term for a period of 3 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 months ended March 31, 2023 and 2022 was $0.9 million and $1.1 million, respectively. Variable lease payments for the three months ended March 31, 2023 and 2022 was $0.4 million and immaterial, respectively. Sublease income of $0.2 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively, was included in other income, net in the unaudited condensed consolidated statements of operations.

As of March 31, 2023 and December 31, 2022, the weighted-average remaining lease term was 2.4 and 2.6 years, respectively. As of March 31, 2023 and December 31, 2022, the weighted-average discount rate was 6.0%.

Future undiscounted lease payments under operating leases as of March 31, 2023 were as follows (in thousands):


	Lease Payment Obligation		Sublease Income		Net Lease Obligation
Remainder of 2023	$	3,070	$	(542)	$	2,528
2024	2,134		(360)		1,774
2025	1,619		(210)		1,409
2026	—		—		—
2027	—		—		—
Total undiscounted lease payments	$	6,823	$	(1,112)	$	5,711
Less: imputed interest	(434)
Present value of future lease payments	6,389
Less: operating lease liabilities, current	3,352
Operating lease liabilities, noncurrent	$	3,037

As of March 31, 2023, the Company did not have any additional significant lease contracts that had not yet commenced.

During the three months ended March 31, 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 three months ended March 31, 2022 in rent and occupancy in the unaudited condensed consolidated statements of operations. There was no impairment loss for leases for the three months ended March 31, 2023.