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 six months ended June 30, 2023 (in thousands):


Operating lease cost	$	560

Total net lease costs	$	560

The weighted average remaining lease term is 2.9 years. The weighted average discount rate utilized is 4%. For the quarter and six months ended June 30, 2023, the Company paid $0.3 million and $0.6 million, respectively, from operating cash flows for its operating leases.

Future minimum lease payments under non-cancellable operating leases as of June 30, 2023, were as follows (in thousands):


2023 (excluding the six months ended June 30, 2023)	$	722
2024		985
2025		260
2026		222
Thereafter		365
Total lease payments		2,554
Less imputed interest		(177	)
Total	$	2,377

As of June 30, 2023, the Company does not have any additional operating leases that have not yet commenced.