Leases

3 Months Ended

Mar. 31, 2023

Operating Leases

The Company has operating leases primarily for office space. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. In calculating the present value of the lease payments, the Company utilizes its incremental borrowing rate, as the rates implicit in the leases were not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

The Company subleases certain leased office space to third parties when it determines there is excess leased capacity. Sublease income is recorded as a reduction of operating expenses.

As part of the restructuring plan described in Note 2, the Company closed certain offices to reflect the geographic distribution of the Company’s employees and $1.0 million amortization of the right-of-use assets was accelerated in the three months ended March 31, 2023.

The components of operating lease costs were as follows (in thousands):


	Three Months Ended March 31,
		2023		2022
Operating lease costs		$	1,875	$	839
Sublease income		(52)		(54)
Total operating lease costs, net		$	1,823	$	785

As of March 31, 2023, the Company's operating leases had a weighted-average remaining lease term of 2.5 years and a weighted-average discount rate of 3.7%.

As of March 31, 2023, maturities of operating lease liabilities were as follows (in thousands):


	Operating Leases
The remainder of 2023	$	2,008
2024	1,643
2025	1,684
2026	141
2027 and thereafter	—
Total future operating lease payments	5,476

Less: Imputed interest	(332)
Total operating lease liabilities	$	5,144
Reconciliation of lease liabilities as shown in the consolidated balance sheets
Operating lease liabilities, current	$	2,195
Operating lease liabilities, noncurrent	2,949
Total operating lease liabilities	$	5,144