Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

11. LEASES

In June 2018, the Company entered into an operating lease for approximately fifteen thousand square feet of office space in Plymouth Meeting, PA, which expires in May 2024. In December 2020, the Company entered into an operating lease for approximately thirteen thousand square feet of additional office space in Plymouth Meeting, PA, which expires in May 2024. The terms of the lease payments provide for rental payments on a monthly basis and on a graduated scale. The Company also leases a fleet of automobiles that are used by its sales representatives and are classified as operating leases.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Our leases have remaining lease terms of less than 1 year to 3 years, some of which may include the option to extend or terminate the leases.

The company recorded operating lease costs of $1,526 and $1,197 for the years ended December 31, 2022 and 2021, respectively, and recorded rent expense of $686 for the year ended December 31, 2020.

As of December 31, 2022, the weighted-average remaining lease term for operating leases was 1.6 years and the weighted-average discount rate for operating leases was 3.8%.

Supplemental balance sheet information related to operating leases was as follows:

Leases	Classification		December 31, 2022		December 31, 2021
Assets
Operating lease right-of-use assets	Other noncurrent assets	$	2,312	$	3,298
Liabilities
Operating lease liability, current portion	Other current liabilities	$	1,614	$	1,527
Operating lease liability, long-term	Other long-term liabilities		975		2,233
Total operating lease liabilities		$	2,589	$	3,760

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

		December 31, 2022		December 31, 2021
Operating cash flows from operating leases	$	1,716	$	1,126
Right of use assets obtained in exchange for operating lease obligations (1)	$	485	$	4,480

(1) Including the balance recognized on January 1, 2021, upon adoption of ASU No. 2016-02.

Future payments under noncancelable operating leases with initial terms of one year or more as of December 31, 2022 consisted of the following:

Years ending December 31,
2023	$	1,679
2024		958
2025		34
2026		—
2027		—
Thereafter		—
Total lease payments		2,671
Less: imputed interest		(82)
Total lease liabilities	$	2,589