The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company’s office leases are between terms of 1 year and 4 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the lease liability nor the right of use asset.

The components of lease expense were as follows for the nine months ended September 30, 2022 (in thousands):


Operating lease cost	$	894

Total net lease costs	$	894

The weighted average remaining lease term is 1.7 years. The weighted average discount rate utilized is 4%. The discount rates applied to each lease, reflects the Company’s estimated incremental borrowing rate. This includes an assessment of the Company’s credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an amount equal to our lease payments in a similar economic environment. For the quarter and nine months ended September 30, 2022, the Company paid $0.6 million and $1.8 million, respectively, from operating cash flows for its operating leases.

Future minimum lease payments under non-cancellable operating leases as of September 30, 2022, were as follows (in thousands):


2022 (excluding the nine months ended September 30, 2022)	$	522
2023		897
2024		556
Thereafter		-
Total lease payments		1,975
Less imputed interest		(237	)
Total	$	1,738

As of September 30, 2022, the Company does not have any additional operating leases that have not yet commenced.