The Company evaluates new contractual arrangements at inception to determine if the contract is or contains a lease. For any contracts that are or contain a lease, the Company determines the appropriate classification of each identified lease as operating or finance. For all identified leases, the Company records the related lease liabilities and ROU assets based on the future minimum lease payments over the lease term, which only includes options to renew the lease if it is reasonably certain that the Company will exercise that option. For leases with original terms of twelve months or less, the Company recognizes the lease expense as incurred and does not recognize lease liabilities and ROU assets. The Company's primary operating lease is for space at a data center which was renewed in April 2022 and expires in 2025. The lease for the Company's San Francisco, CA headquarters, our largest office, expired in July 2022. Effective as of August 1, 2022, the Company entered into an agreement for a new, significantly smaller headquarters office space in San Francisco, CA under a short-term lease.

Since the start of the COVID-19 pandemic in March 2020, most of the Company’s employees have been working from home. We expect that most of our employees will continue to work from home for the foreseeable future.

Lease liabilities are measured based on the future minimum lease payments discounted over the lease term. The Company uses the discount rate implicit in the lease whenever that rate is readily determinable. For leases where no such rate is determinable, the Company uses its incremental borrowing rate, or the rate of interest that Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and in a similar economic environment. As of September 30, 2022, the weighted-average rate used in discounting the lease liabilities for ROU operating leases was 6.0%. Current and non-current operating lease liabilities are presented on the condensed consolidated balance sheet.

ROU assets are measured based on the associated lease liabilities, adjusted for any lease incentives such as tenant improvement allowances. ROU assets for operating leases are presented as non-current assets on the condensed consolidated balance sheets. The Company recognizes the expense for operating leases on straight-line basis over the lease term. As of September 30, 2022, the weighted-average remaining lease term for ROU operating leases was 2.5 years.

As of September 30, 2022 and December 31, 2021 the Company had net operating lease ROU assets of $4,240 and $1,660, respectively. Operating lease costs, consisting primarily of rental expense, were approximately $718 and $1,495, for the three months ended September 30, 2022 and 2021, respectively and $3,152 and $4,733 for the nine months ended September 30, 2022 and 2021, respectively. Variable rent expense was not significant for the three and nine months ended September 30, 2021 and 2020.

Finance lease activity was insignificant in each of the nine months ended September 30, 2022 and 2021.

The maturities of operating lease liabilities as of September 30, 2022 are as follows:



2022 (remaining three months)	$	455
2023		1,822
2024		1,822
2025		455
Total lease payments		4,554
Less: Amount representing imputed interest		(314	)
Present value of lease liabilities		4,240
Less: Current portion of lease liabilities		(1,620	)
Non-current portion of lease liabilities	$	2,620

Supplemental cash flow information related to operating leases was as follows:


	Nine Months Ended		Nine Months Ended
	September 30, 2022		September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	—	$	15
Operating cash flows from operating leases		3,481		5,074

ROU assets obtained in exchange for lease liabilities:
Operating lease liabilities	$	5,015	$	—

The Company sublet portions of its San Francisco office space under an agreement that expired in July 2022. Income from subleases is included in other income, net, on the accompanying condensed consolidated statements of comprehensive loss. Sublease income was $45 and $271 for the three months ended September 30, 2022 and 2021, respectively, and $587 and $813 for each of the nine months ended September 30, 2022 and 2021, respectively.