Leases

9 Months Ended

Sep. 30, 2022

The Company has entered into various non-cancelable operating lease agreements for office facilities and equipment with original lease periods expiring between 2022 and 2025. Certain of these arrangements have free rent periods and/or escalating rent payment provisions. As such, the Company recognizes rent expense under such arrangements on a straight-line basis in accordance with U.S. GAAP. Some leases include options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of twelve months or less are not recorded on the balance sheet.

Operating lease expense was $0.5 million and $0.6 million for the three months ended September 30, 2022 and 2021, respectively, and $1.6 million and $1.8 million for the nine months ended September 30, 2022 and 2021, respectively.

Supplemental cash flow and other information related to operating leases were as follows:

September 30,
2022

September 30,
2021

Weighted Average Remaining Lease Term (in years)

2.3

2.5

Weighted Average Discount Rate

6.1%

6.4%

Cash paid for amounts included in the measurement of operating lease liabilities

$0.5 million

$2.1 million

The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2022 (in thousands):


Year Ending December 31,	Amount
Remainder of 2022	$	403
2023	1,337
2024	697
2025	441


Total undiscounted cash flows	$	2,878
Less imputed interest	(210)
Present value of lease liabilities	$	2,668