Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.1
Leases
3 Months Ended
Mar. 31, 2023
Leases  
Leases

Note 11. Leases

Operating Leases

The Company has operating leases primarily consisting of office space with remaining lease terms of less than one year to six years, subject to certain renewal options as applicable.

Leases with an initial term of twelve months or less are not recorded on the balance sheet, and the Company does not separate lease and non-lease components of contracts. There are no material residual guarantees associated with any of the Company’s leases, and there are no significant restrictions or covenants included in the Company’s lease agreements. Certain leases include variable payments related to common area maintenance and property taxes, which are billed by the landlord, as is customary with these types of charges for office space.

Our lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings and comparable quality and derived an imputed rate, which was used in a portfolio approach to discount its real estate lease liabilities. The Company used estimated incremental borrowing rates for all active leases.

The table below presents certain information related to lease costs for the Company’s operating leases (amounts in thousands):

The following table presents the weighted average remaining lease term and the weighted average discount rate related to operating leases.

    

March 31, 2023

    

December 31, 2022

Weighted average remaining lease term (in years) - operating leases

4.5

4.7

Weighted average discount rate - operating leases

 

6.19

%

6.19

%

Three Months Ended March 31, 

    

2023

    

2022

Operating lease expense

$

460

$

332

Short-term lease expense

 

161

112

Total lease cost

$

621

$

444

The following table presents the maturities of lease liabilities (amounts in thousands):

    

Operating

Years Ended December 31,

Leases

2023

$

1,508

2024

 

1,714

2025

 

1,429

2026

 

1,083

2027

 

969

2028 and thereafter

 

709

Total minimum lease payments

7,412

Less effects of discounting

(933)

Present value of future minimum lease payments

$

6,479