Leases

6 Months Ended

Jun. 30, 2021

Leases

NOTE 8 - Leases

 8. Leases

The Company determines if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. The Company has lease arrangements for certain equipment and facilities that typically have original terms not exceeding five years and, in some cases, contain automatic renewal provisions that provide for multiple year renewal terms unless either party, prior to the then-expiring term, notifies the other party of the intention not to renew the lease. The Company’s lease terms may also include options to terminate the lease when it is reasonably certain that the Company will exercise such options. When readily determinable, the Company uses the implicit rate in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Lease Liabilities. Lease liabilities as of June 30, 2021, consist of the following:

Current portion of lease liabilities	$	951
Long term lease liabilities, net of current portion		1,763
Total lease liabilities	$	2,714

The Company’s aggregate lease maturities as of June 30, 2021, are as follows:

Year
2021 (remaining 6 months)	$	601
2022		881
2023		797
2024		528
2025		196
Total minimum lease payments		3,003
Less imputed interest		(289	)
Total lease liabilities	$	2,714

Rent expense included in operating expenses and cost of revenues was $0.3 million and $0.6 million for the three and six months ended June 30, 2021, respectively. The Company had a weighted average remaining lease term of 3.2 years and a weighted average discount rate of 6.25%. Rent expense included in operating expenses and cost of revenues was $0.4 million and $0.9 million for the three and six months ended June 30, 2020, respectively. The Company had a weighted average remaining lease term of 4.0 years and a weighted average discount rate of 6.25%.