The Company has operating leases for facilities and finance leases for office equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company determines if an arrangement is a lease at inception of a contract. Right of Use (“ROU”) assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term is deemed to include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. ROU assets also include any advance lease payments made and exclude lease incentives. As most of the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments on a collateralized basis. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term.

The Company's lease cost for the years ended December 31, 2022 and 2021 included the following components:


	Year Ended December 31,
	2022		2021
Operating lease costs	$	525	$	453
Short-term lease costs		69		167
Variable lease costs		10		6
Amortization of finance lease assets		60		72
Interest on finance lease liabilities		5		7
Total lease cost	$	669	$	705

The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases recorded on the balance sheet as of December 31, 2022:


Year	Operating Leases			Finance Leases
2023	$	671		$	56
2024		675			45
2025		585			26
2026		522			5
2027		505			0
Thereafter		1,676			0
Total minimum payments required		4,634			132
Less: amount representing interest		780			8
Present value of net minimum lease payments		3,854			124
Less: current maturities of lease obligations		(527	)		(51	)
Long-term lease obligations	$	3,327		$	73

The weighted average remaining lease terms and discount rates for all the Company’s operating and finance leases were as follows as of December 31, 2022 and 2021:


	Year Ended December 31,
	2022	2021
Weighted-average remaining lease term - finance leases	2.6 years	3.0 years
Weighted-average remaining lease term - operating leases	7.4 years	8.4 years
Weighted-average discount rate - finance leases	4%	4%
Weighted-average discount rate - operating leases	5%	5%

The table below presents supplemental balance sheet information related to leases during the year ended December 31, 2022 and 2021:


		Year Ended December 31,
Leases	Consolidated Balance Sheet Classification	2022		2021
Assets:
Operating right-of-use assets	Other noncurrent assets	$	2,241	$	2,289
Finance right-of-use assets	Other noncurrent assets		120		148
Total lease assets		$	2,361	$	2,437
Liabilities:
Current
Operating lease liabilities	Accrued liabilities	$	527	$	475
Finance lease liabilities	Accrued liabilities		51		62
Noncurrent
Operating lease liabilities	Long-term liabilities		3,327		3,600
Finance lease liabilities	Long-term liabilities		73		92
Total lease liabilities		$	3,978	$	4,229

As part of the acquisition of Smarteq on April 30, 2021, the Company assumed an office lease and two automotive leases. The office in Kista, Sweden has 4,080 square feet used for engineering, sales, and administration with a lease term ending July 31, 2023. On the acquisition date, the Company recorded $0.2 million for each of the ROU assets and the lease liabilities. In October 2022, the office lease was extended for 36 months ending July 31, 2026 and the Company recorded a $0.2 million adjustment for each of the ROU assets and the lease liabilities.

As a cost saving initiative, the Company separated all 14 employees from its Beijing office in November 2021 and closed this office in the first quarter of 2022. In April 2022, the Company entered into a two-year office lease ending April 30, 2024 for 350 square feet of office space and recognized a present value of the right of use asset of $0.1 for this new office lease. Four former employees in Beijing were engaged through a third-party employment agency and will provide sales and technical support from this new smaller office.