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Operating Leases

6 Months Ended

Jun. 30, 2022

6. Operating Leases

The Company has various lease agreements for its offices and service delivery centers. The Company has determined that the risks and benefits related to the leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases.

These lease agreements are for terms ranging from two to eleven years and, in most cases, provide for rental escalations ranging from 1.75% to 10%. Most of these agreements are renewable at the mutual consent of the parties to the contract.

The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands):


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Rent expense for long-term operating leases	$	337	$	388	$	713	$	776
Rent expense for short-term leases		144		34		261		84
Total rent expense	$	482	$	422	$	974	$	860

The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of June 30, 2022 (in thousands):


Year	Amount
2022	$	1,160
2023		865
2024		825
2025		840
2026		855
2027 and thereafter		1,953
Total lease payments		6,498
Less: Interest		(1,635)
Net present value of lease liabilities	$	4,863

Current portion	$	776
Long-term portion		4,087
Total	$	4,863

The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2022 were as follows:


Weighted-average lease term remaining	48 months
Weighted-average discount rate	8.68	%