Leases

12 Months Ended

Dec. 31, 2021

Leases

Leases

13. Leases

The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to, and the agreement creates enforceable rights and obligations. Under Topic 842, a contract is or contains a lease when (i) explicitly or implicitly identified assets have been deployed in the contract and (ii) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company also considers whether its service arrangements include the right to control the use of an asset.

The Company leases office facilities from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 5 years. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term up to 10 additional years. In addition, certain leases contain termination options, where the rights to terminate are held by either the Company, the lessor, or both parties. These options to extend

or terminate a lease are included in the lease terms when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.

Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease expense are as follows:

	2021
Operating lease cost	$	2,155
Variable lease cost		339
		2,494

Prior to the adoption of Topic 842 on January 1, 2021, the Company recognized operating lease costs on a straight-line basis once control of the space was achieved. Rent expense was $1,700 and $1,800 during the years ended December 31, 2020 and 2019, respectively.

Supplemental cash flow information related to leases is as follows:

	2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows for operating leases	$	2,141
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	6,365

Supplemental balance sheet information related to leases is as follows:

	December 31,
	2021
Operating lease right-of-use assets	$	4,504
Operating lease liabilities, current(1)	$	1,957
Operating lease liabilities, non-current		2,694
Total operating lease liabilities	$	4,651

⁽¹⁾Operating lease liabilities, current are included in accrued expenses and other current liabilities on the consolidated balance sheet as of December 31, 2021.

Other information related to operating leases is as follows:

	December 31,
	2021
Weighted average remaining lease term		2.1 years
Weighted average discount rate		9.4 %

Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the balance sheet as of December 31, 2021 is as follows:

	Lease
	Payments
2022	$	2,276
2023		1,613
2024		888
2025		432
2026		—
Thereafter		—
Total lease payments	$	5,209
Less imputed interest		(558)
Total present value of lease liabilities	$	4,651