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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Classification of Operating ROU Assets and Lease Liabilities on the Balance Sheet

Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets (in thousands):

		As of
Operating Leases	Classification	June 30, 2022		December 31, 2021

Leased Assets
Operating lease - right of use assets	Long term assets	$	880	$	1,200

Lease Liabilities
Operating lease liabilities - Current	Other current liabilities		1,188		1,205
Operating lease liabilities	Long term liabilities		214		790
		$	1,402	$	1,995

Lease Income and Expenses

The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during the three and six months ended June 30, 2022 and 2021, (in thousands):

		Three months ended						Six months ended
Lease Cost	Classification	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021

Operating lease cost ⁽¹⁾	Selling, general and administrative expenses	$	174		$	177		$	360		$	369
Short-term leases costs ⁽²⁾	Selling, general and administrative expenses		15			14			30			30
Sublease income⁽³⁾	Selling, general and administrative expenses		(19	)		(32	)		(37	)		(64	)
Net lease cost		$	170		$	159		$	353		$	335

(1) Includes variable lease costs which are immaterial.

(2) Includes leases maturing less than twelve months from the report date.

(3) ^{Sublease portfolio consists of three tenants, which sublease parts of our principal executive office
located at 1332 Londontown Blvd, Suite 200, Sykesville, MD.}

Future Minimum Lease Payments

The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of June 30, 2022 are as follows (in thousands):

(in thousands)	Gross Future Minimum Lease Payments
2022 remainder	$	645
2023		673
2024		122
2025		10
2026		3
Thereafter		-
Total lease payments	$	1,453
Less: Interest		51
Present value of lease payments	$	1,402

Operating Lease Weighted Average Remaining Lease Term And Discount Rate

We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases. As noted in our lease accounting policy, we use the incremental borrowing rate as the lease discount rate.

Lease Term and Discount Rate	June 30, 2022			December 31, 2021
Weighted-average remaining lease term (years)
Operating leases		1.36			1.80
Weighted-average discount rate
Operating leases		5.00	%		5.00	%

Classification of Lease Payments in the Statement of Cash Flows

The table below sets out the classification of lease payments in the consolidated statement of cash flows.

(in thousands)	Six months ended
Cash paid for amounts included in measurement of liabilities	June 30, 2022		June 30, 2021
Operating cash flows used in operating leases	$	642	$	639