Leases

12 Months Ended

Dec. 31, 2022

5. Leases

The Company leases real estate property under operating leases. The Company leases office space in California, Michigan, Malaysia, Japan, Taiwan, the Netherlands, Finland, and Ukraine all under non-cancellable operating leases with various expiration dates through April 2027.

In January 2021, the Company signed an amendment to its Santa Clara office space lease where the lessor provided the Company lease incentives of $0.4 million and extended the term of the lease by three months. The amendment was accounted as a single modified lease and the remaining payments were remeasured using an updated discount rate. The agreement provides for an option to renew for an additional 5 years and for monthly rent payments through the term of the lease. During the year ended December 31, 2022, the Company commenced 8 operating leases with 2 to 7 year lease terms, and recorded right-of-use assets of $5.1 million, current lease liabilities of $1.1 million, and long-term lease liabilities of $4.2 million upon the commencement of these leases.

The remaining lease terms vary from 1 to 6 years. For its leases the Company has options to extend the lease term for periods varying from 1 to 5 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. The Company also has variable lease payments that are primarily composed of common area maintenance and utility charges.

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheet as of December 31, 2022 and 2021:


	As of
	December 31, 2022			December 31, 2021
	(in thousands)
Right-of-use assets	$	10,848		$	8,194
Lease liabilities included in accrued expenses and other current liabilities		2,485			1,336
Lease liabilities - non-current		8,149			6,398
Total operating lease liabilities	$	10,634		$	7,734
Weighted-average remaining lease term (years)		4.0			5.0
Weighted-average discount rate		4.6	%		4.5	%

The table below presents certain information related to the lease costs for operating leases for the years ended December 31, 2022, 2021, and 2020:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Operating lease cost	$	2,759	$	1,761	$	1,696
Short-term lease cost		1,389		579		356
Variable lease cost		911		599		332
Total lease cost	$	5,059	$	2,939	$	2,384

Cash paid for operating lease liabilities was $2.5 million, $1.7 million, and $2.3 million for the years ended December 31, 2022, 2021, and 2020 respectively.

Operating Lease Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2022:


	(in thousands)
2023	$	2,922
2024		3,056
2025		2,696
2026		2,171
2027		628
2028 and beyond		190
Total minimum lease payments		11,663
Less: amount of lease payments representing interest		(1,029	)
Present value of future minimum lease payments		10,634
Less: current obligations under leases		(2,485	)
Long-term lease liabilities	$	8,149