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 year ended December 31, 2021 and 2020 included the following components:

	Years Ended December 31,
	2021		2020
Operating lease costs	$	453	$	642
Short-term lease costs		167		114
Variable lease costs		6		2
Amortization of finance lease assets		72		77
Interest on finance lease liabilities		7		8
Total lease cost	$	705	$	843

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, 2021:

Year	Operating Leases			Finance Leases
2022	$	630		$	66
2023		638			44
2024		581			33
2025		501			15
2026		494			6
Thereafter		2,180			0
Total minimum payments required		5,024			164
Less: amount representing interest		949			10
Present value of net minimum lease payments		4,075			154
Less: current maturities of lease obligations		(475	)		(62	)
Long-term lease obligations	$	3,600		$	92

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, 2021 and 2020:

	Years Ended December 31,
	2021	2020
Weighted-average remaining lease term - finance leases	3.0 years	2.9 years
Weighted-average remaining lease term - operating leases	8.4 years	9.6 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, 2021 and 2020:

		Year Ended December 31,
Leases	Consolidated Balance Sheet Classification	2021		2020
Assets:
Operating right-of-use assets	Other noncurrent assets	$	2,289	$	2,272
Finance right-of-use assets	Other noncurrent assets		148		157
Total lease assets		$	2,437	$	2,429
Liabilities:
Current
Operating lease liabilities	Accrued liabilities	$	475	$	269
Finance lease liabilities	Accrued liabilities		62		68
Noncurrent
Operating lease liabilities	Long-term liabilities		3,600		3,949
Finance lease liabilities	Long-term liabilities		92		96
Total lease liabilities		$	4,229	$	4,382

In January 2019, the Company entered into an eleven-year lease ending February 28, 2031 for 21,030 square feet of office space in Clarksburg, Maryland for the Company’s test & measurement product line. The Company moved the operations for its test & measurement product line from its Germantown, Maryland office in January 2020. The Company recognized a present value ROU asset of $2.1 million in August 2019, which was the lease commencement date for accounting purposes. The present value of the ROU asset on the commencement date reflected 14 months of rent abatement and $1.5 million in tenant improvement incentives in the form of cash reimbursements which the Company fully utilized during 2019 and 2020.

On April 30, 2021, as part of the acquisition of Smarteq, the Company assumed an office lease with a lease term ending July 31, 2023. The office in Kista, Sweden has 4,080 square feet used for engineering, sales, and administration personnel. On the acquisition date, the Company recorded $0.2 million for each of the ROU assets and the lease liabilities.

In June 2021, the Company signed a one-year lease renewal for its engineering design center in Beijing, China. The total lease obligation was approximately $0.1 million. As a cost saving initiative, the Company separated all 14 employees from its Beijing office in November 2021. The Company plans to close this Beijing office in the first quarter 2022. Four former employees in Beijing were rehired through a third-party employment agency and will provide sales and engineering support.

On October 16, 2020, the Wang Zhuang Village Committee issued a notice informing PCTEL Tianjin that the Chinese Party Central Committee and the State Council were accelerating the layout optimization and transformation of the industrial park in which the leased premises is located, and accordingly leases and lease extensions for all premises in the industrial park were suspended. As a result of the uncertainty regarding the Tianjin Lease renewal, the Company accelerated its plan to transition all manufacturing in Tianjin to contract manufacturers. The Company completed the manufacturing transition in the first quarter 2022. With the transition complete, the Company plans to vacate the Tianjin manufacturing facility during the first half of 2022. The Company plans to retain a team of 10-15 employees associated with sourcing, quality, and local customer support at a new leased facility in Tianjin, China. In November 2021, the Company entered into a two-year lease ending December 31, 2023 for 1,694 square feet of office space in Tianjin, China. The Company recognized a present value of the right of use asset of $0.1 million on December 31, 2021.