Leases

3 Months Ended

Mar. 31, 2022

4. Leases

The Company rents certain office facilities and equipment under noncancelable operating leases. As of March 31, 2022, approximately 97,000 square feet of office space is utilized for our sales and recruiting offices, delivery centers, and corporate headquarters. All of our leases are classified as operating leases. The average initial lease term is four years. Several leases have an option to renew, at our sole discretion, for an additional term. Our present lease terms range from less than one year to 5 years with a weighted average of 3.8 years. Leases with an initial term of twelve months or less are not recorded on the balance sheet.

The following table summarizes the balance sheet classification of the lease assets and related lease liabilities:


	March 31, 2022		December 31, 2021

	( in thousands)
Assets:
Long-term operating lease right-of-use assets	$	5,033	$	4,894

Liabilities:
Short-term operating lease liability	$	1,571	$	1,479
Long-term operating lease liability		3,677		3,706

Total liabilities	$	5,248	$	5,185

Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows:


	Amount as of March 31, 2022
	(in thousands)
2022 (For remainder of year)	$	1,299
2023		1,732
2024		1,002
2025		734
2026		717


	Amount as of March 31, 2022
	(in thousands)
Thereafter		171

Total		5,655
Less: Imputed interest		(407	)

Present value of operating lease liabilities	$	5,248

The weighted average discount rate used to calculate the present value of future lease payments was 4.0%.

We recognize rent expense for these leases on a straight-line basis over the lease term. Rental expense for the three months ended March 31, 2022 and 2021 totaled $0.4 million and $0.4 million, respectively.

Total cash paid for lease liabilities for the three months ended March 31, 2022 and 2021 totaled $0.4 million and $0.4 million, respectively.

New leases entered into during the three months ended March 31, 2022 and 2021 totaled $0.5 million and $0.3 million, respectively, and are considered non cash transactions.