Leases

9 Months Ended

Sep. 30, 2021

10. Leases

The Company leases office space and equipment, and certain office space is subleased. Management determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease cost consists of the following (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2021			2020			2021			2020
	(unaudited)
Lease cost	$	609		$	558		$	1,724		$	1,673
Sublease income		(151	)		(151	)		(452	)		(452	)
Total lease cost	$	458		$	407		$	1,272		$	1,221

The maturity of operating lease liabilities is presented in the following table (in thousands):

	As of September 30, 2021
	(unaudited)
2021	$	488
2022		1,722
2023		1,707
2024		1,541
2025		1,182
Thereafter		491
Total lease payments		7,131
Less imputed interest		(831	)
Present value of lease liabilities	$	6,300

Additional information relating to the Company’s operating leases follows:

	As of September 30, 2021
	(unaudited)
Weighted average remaining lease term (years)		4.20
Weighted average discount rate		6.20	%