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 and equipment from unrelated parties under operating lease agreements that have initial terms ranging from 1 to 7.25 years. Some leases include one or more options to renew, generally at the Company's sole discretion, with renewal

terms that can extend the lease term up to 5 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. The Company is a sub-lessor in an agreement with a term of 3 years.

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


	Nine months ended
	September 30, 2022
Operating lease cost	$	2,370
Short-term lease cost		37
Total lease cost	$	2,407

For the three and nine months ended September 30, 2022, sublease income was $66,000 and $199,000, respectively, recorded as other income.

Supplemental cash flow information related to leases is as follows (in thousands):


	Nine months ended
	September 30, 2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	1,629

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	16,741

Supplemental balance sheet information related to leases is as follows (in thousands):


	September 30, 2022
Operating lease right-of-use assets	$	14,416
Included in other current liabilities:
Operating lease liabilities, current	$	1,413
Operating lease liabilities, noncurrent		14,326
Total operating lease liabilities	$	15,739


Weighted-average remaining lease term - operating leases:		5.54

Weighted-average discount rate - operating leases:		2.6%

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 September 30, 2022 is as follows (in thousands):


2022 (excluding the nine months ended September 30)	$	805
2023		3,352
2024		2,991
2025		2,602
2026		2,580
Thereafter		4,710
Total lease payments	$	17,040
Less imputed interest		(1,301	)
Total present value of lease liabilities	$	15,739

As of December 31, 2021, a summary of the Company's future minimum lease payments, as determined under Topic 840, for all non-cancelable operating leases, excluding minimum sublease rentals of $0.6 million due in the future under a non-cancelable sublease, was as follows (in thousands):


	Operating leases
2022	$	2,251
2023		2,803
2024		2,417
2025		2,215
2026		2,220
Thereafter		4,571
Total future minimum lease payments	$	16,477