Leases

6 Months Ended

Jun. 30, 2022

The Company rents certain office facilities and equipment under noncancelable operating leases. As of June 30, 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 five 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 4.8 years with a weighted average of 3.7 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 as of June 30, 2022 and December 31, 2021:


	June 30, 2022		December 31, 2021

	(in thousands)
Assets:
Long-term operating lease right-of-use assets	$	4,641	$	4,894

Liabilities:
Short-term operating lease liability	$	1,530	$	1,479
Long-term operating lease liability		3,179		3,706

Total liabilities	$	4,709	$	5,185

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


	Amount as of June 30, 2022
	(in thousands)
2022 (For remainder of year)	$	831
2023		1,678
2024		975
2025		707
2026		691
Thereafter		164

Total		5,046
Less: Imputed interest		(337	)

Present value of operating lease liabilities	$	4,709

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 and six months ended June 30, 2022 totaled $0.5 million and $0.9 million, respectively. Rental expense for the three and six months ended June 30, 2021 totaled $0.5 million and $0.9 million, respectively.

Total cash paid for lease liabilities for the three and six months ended June 30, 2022 totaled $0.5 million and $0.9 million, respectively. Total cash paid for lease liabilities for the three and six months ended June 30, 2021 totaled $0.3 million and $0.7 million, respectively.

New leases entered into during the three and six months ended June 30, 2022 totaled $0 million and $0.5 million, respectively. New leases entered into during the three and six months ended June 30, 2021 totaled $2.8 million and $3.1 million, respectively. New leases are considered non cash transactions.