Leases

12 Months Ended

Dec. 31, 2021

The Company has certain facility leases with non-cancellable terms ranging between one and two years, with certain renewal options.

The Company records lease liabilities based on the present value of lease payments over the lease term using an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. To compute the present value of the lease liability, the Company used a weighted-average discount rate of 3%. Certain lease agreements include renewal options that are under the Company’s control. The Company includes optional renewal periods in the lease term only when it is reasonably certain that the Company will exercise its option. The weighted-average remaining lease term as of December 31, 2021 is 1.8 years.

The Company does not separate lease components from non-lease components. Variable lease payments include payments to lessors for taxes, maintenance, insurance and other operating costs as well as payments that are adjusted based on an index or rate. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

Future maturities of operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2021 are as follows (in thousands), excluding option renewals:


As of December 31, 2021:

2022	$	337
2023	236
Total lease payments	573
Less: Imputed interest	(16)
Total	$	557

Lease costs for operating leases were $337,000 and $371,000 for the years ended December 31, 2021 and 2020, respectively.