The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under Topic 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.

The Company leases office facilities and equipment from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 7.25 years. Some leases include one or more options to renew, generally at the Company's sole discretion, with renewal terms that can extend the lease term up to 5 years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms

when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants. The Company is a sub-lessor in an agreement with a term of 3 years.

Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease expense are as follows (in thousands):


	Six months ended
	June 30, 2022
Operating lease cost	$	1,551
Short-term lease cost		24
Total lease cost	$	1,575

For the three and six months ended June 30, 2022, sublease income was $66,000 and $133,000, respectively, recorded as other income.

Supplemental cash flow information related to leases is as follows (in thousands):


	Six months ended
	June 30, 2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	954

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	15,142

Supplemental balance sheet information related to leases is as follows (in thousands):


	June 30, 2022
Operating lease right-of-use assets	$	13,635
Included in other current liabilities:
Operating lease liabilities, current	$	2,529
Operating lease liabilities, noncurrent		12,316
Total operating lease liabilities	$	14,845


Weighted-average remaining lease term - operating leases:		5.88

Weighted-average discount rate - operating leases:		3.1%

Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the balance sheet as of June 30, 2022 is as follows (in thousands):


2022 (excluding the six months ended June 30)	$	1,377
2023		2,993
2024		2,620
2025		2,220
2026		2,188
Thereafter		4,547
Total lease payments	$	15,945
Less imputed interest		(1,100	)
Total present value of lease liabilities	$	14,845

The table above excludes lease liabilities for leases that have been executed but not yet commenced. As of June 30, 2022, the Company had such lease commitments relating to operating lease payment obligations of approximately $1.9 million for a building

lease with a term of 62 months. The Company will recognize a right-of-use asset and an associated lease liability at the time such asset becomes available for use. Such lease is currently expected to commence in the third quarter of 2022.

As of December 31, 2021, a summary of the Company's future minimum lease payments, as determined under Topic 840, for all non-cancelable operating leases, excluding minimum sublease rentals of $0.6 million due in the future under a non-cancelable sublease, was as follows (in thousands):


	Operating leases
2022	$	2,251
2023		2,803
2024		2,417
2025		2,215
2026		2,220
Thereafter		4,571
Total future minimum lease payments	$	16,477