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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
In the first quarter of 2022, we adopted ASC 842, Leases using the modified retrospective approach that requires us to determine our lease balances as of the date of adoption. Prior periods continue to be reported under accounting standards in effect for those periods.
The Company determines if an arrangement is a lease at inception of the contract. If an arrangement is a lease, the present value of the related lease payments is recorded as a liability and an equal amount is capitalized as a right of use asset on the Company’s balance sheet. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. We have long-term operating leases generally for offices. The Company’s estimated incremental borrowing rate, determined at the lease commencement date using the Company’s average secured borrowing rate, is used to calculate present value.
Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term.
The components of lease expense are as follows:
Year Ended December 31, 2022
(in thousands)
Lease Cost
Operating lease cost$1,992 
Total net lease cost$1,992 
The following table presents the consolidated balance sheet information related to leases as of December 31, 2022.
As of December 31, 2022
Balance Sheet Classification
(in thousands)
Leases
Assets
Operating lease assets$6,325 Other noncurrent assets
Total assets$6,325 
Liabilities
Operating lease liability$1,666 Accounts payable and accrued expenses
Operating lease noncurrent liability5,213 Other noncurrent liabilities
Total liabilities$6,879 
As of December 31, 2022
Long-Term and Discount Rate
Weighted-average remaining lease term:
Operating Lease 4.3 years
Weighted-average discount rate:
Operating Lease 5 %
The following table presents a schedule of future minimum lease payments required under all operating lease agreements as of December 31, 2022.
As of December 31, 2022
Operating Leases
(in thousands)
2023$1,963 
20241,650 
20251,542 
20261,549 
2027935 
Total lease payments7,639 
Less imputed interest(760)
Total lease obligations6,879 
Less current obligations(1,666)
Long-term lease obligations$5,213 
Supplemental consolidated statement of cash flow information related to leases is as follows:
Year Ended December 31, 2022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$2,128 
ROU assets obtained in exchange for operating lease liabilities$7,956