LEASES

3 Months Ended

Mar. 31, 2022

NOTE 8 - LEASES

We have entered into office space lease agreements, which qualify as operating leases under ASU No. 2016-02, “Leases (Topic 842)”. Under such leases, the lessors receive annual minimum (base) rent. The leases have original terms (excluding extension options) ranging from one year to ten years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We record base rent expense under the straight-line method over the term of the lease. In the accompanying Condensed Consolidated Statements of Comprehensive Loss, rent expense is included in operating expenses under general and administrative expenses. The components of the rent expense for the three months ended March 31, 2022 and 2021 are as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Operating lease cost	$	557	$	570
Sublease income	(11)		(11)
Net rent expense	$	546	$	559

For purposes of calculating the operating lease assets and lease liabilities, extension options are not included in the lease term unless it is reasonably certain we will exercise the option, or the lessor has the sole ability to exercise the option. The weighted average discount rate of our operating leases is 8% as of March 31, 2022 and December 31, 2021, respectively. The weighted average remaining lease term is five years and six years as of March 31, 2022 and December 31, 2021, respectively.

Supplemental cash flow information related to operating leases for the three months ended March 31 are as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	476	$	609
Non-cash operating activities:
Operating lease assets obtained in exchange for new operating lease liabilities	$	—	$	325

Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows (in thousands):


2022	$	1,396
2023	1,574
2024	1,384
2025	974
2026	610
2027	626
Thereafter	566
Total minimum lease payments	7,130
Less: imputed interest	(1,310)
Total lease liabilities	$	5,820