Leases

9 Months Ended

Sep. 30, 2023

The Company has operating leases for real estate and certain equipment. The Company leases office space in Canada, Germany, Spain, the U.K., and the U.S. under operating leases. Our leases have remaining lease terms ranging from less than one year up to seven years. Certain leases include one or more options to renew. In addition, we sublease real estate to a third party. All of our leases qualify as operating leases.

The following table summarizes the components of lease expense for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Operating lease cost	$	548	$	510	$	1,868	$	1,753
Short-term lease cost	26		—		66		—
Variable lease cost	194		137		510		528
Sublease income	(90)		(89)		(270)		(263)
Total lease cost	$	678	$	558	$	2,174	$	2,018

Cash payments against the operating lease liabilities totaled $2.5 million and $2.4 million and for the nine months ended September 30, 2023 and 2022. ROU assets obtained in exchange for lease obligations was $512,000 for the nine months ended September 30, 2023. There was no ROU asset obtained in exchange for lease obligations for nine months ended September 30, 2022.

The following table summarizes the presentation in our condensed consolidated balance sheets of our operating leases (in thousands):


		September 30, 2023			December 31, 2022
Assets:
	Operating lease right-of-use assets	$	6,334		$	7,440

Liabilities:
	Operating lease liabilities	$	2,568		$	2,972
	Long-term operating lease liabilities	7,141			8,326
	Total operating lease liabilities	$	9,709		$	11,298

Weighted average remaining lease term (years)		5.44			5.87
Weighted average discount rate		4.3		%	4.3		%

Maturities of lease liabilities were as follows (in thousands):


Years ending December 31,
2023 (excluding the nine months ended September 30, 2023)	$	710
2024	2,486
2025	1,879
2026	1,394
2027	1,350
Thereafter	2,925
Total lease payments	10,744
Less interest	(1,035)
Present value of operating lease liabilities	$	9,709