Leases

6 Months Ended

Jun. 30, 2023

The Company has operating and finance leases for its corporate offices and other service agreements. Its leases have remaining lease terms of less than one to four years, some of which include options to extend.

In connection with the leases, the Company recognized operating lease right of use assets of $0.4 million and $1.6 million and an aggregate lease liability of $1.3 million and $2.8 million in its condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively.

As of June 30, 2023, due to a dispute with respect to one of the leases in Israel, the Company was required to pledge cash as collateral security to be maintained at an Israeli bank. The collateral security would remain in control of the bank, to be available in order to satisfy outstanding obligations under the lease contracts. Accordingly, the Company had cash at an Israeli bank of approximately $0.2 million as of June 30, 2023, which is recorded as restricted cash in the condensed consolidated balance sheets. In the third quarter of 2021, the Company entered into a new lease in Australia and was required to pledge $0.2 million in cash as collateral security, which is also recorded as restricted cash in the condensed consolidated balance sheets.

The Company continues to actively assess its global lease portfolio. However, any additional de-recognition of right of use assets and incurrence of various one-time expenses in connection with early termination of additional leases are not expected to be material to its financial condition or results of operations.

Supplemental cash flow information related to leases for the three and six months ended June 30, 2023 and 2022 are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	863	$	1,264	$	1,837	$	2,383
Operating cash flows for finance leases	13		54		37		118
Financing cash flows for finance leases	968		929		1,926		1,849

The components of lease costs for the periods listed are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

	(In thousands)
Finance lease cost:
Amortization of right of use assets	$	919	$	921	$	1,830	$	1,833
Interest	13		54		37		118
Operating lease cost	2,887		1,408		5,627		4,410
Total lease cost	$	3,819	$	2,383	$	7,494	$	6,361


	June 30, 2023		June 30, 2022
Weighted Average Remaining Lease Term:
Operating leases	2.1 years		2.0 years
Finance leases	1.1 years		1.5 years

Weighted Average Discount Rate:
Operating leases	7	%	7	%
Finance leases	4	%	4	%

Supplemental balance sheet information related to leases was as follows:


	Financial Statement Classification	June 30, 2023		December 31, 2022

		(In thousands)
Assets
Operating right of use assets	Operating lease right of use assets	$	415	$	1,604
Finance right of use assets	Property and equipment, net	1,248		3,083
Liabilities
Current:
Operating lease liabilities	Operating lease liabilities	$	654	$	2,160
Finance lease liabilities	Accrued expenses and other current liabilities	692		2,569
Non-current:
Operating lease liabilities	Operating lease liability, net of current portion	$	602	$	682
Finance lease liabilities	Other liabilities	136		191

Future minimum lease payments under non-cancellable operating and finance leases (with an initial or remaining lease term in excess of one year) are as follows:


	June 30, 2023
	Operating Leases		Finance Leases

	(In thousands)
2023 (remaining six months for June 30, 2023)	$	580	$	650
2024	425		113
2025	346		85
2026	144		—
2027	—		—
Total minimum lease payments	1,495		848
Less: present value adjustment	(239)		(20)
Present value of lease liabilities	$	1,256	$	828