LEASES

6 Months Ended

Jun. 30, 2022

The Company leases office facilities under noncancelable operating lease agreements. During the period from January 1, 2022 through January 26, 2022 (Predecessor) and January 27, 2022 through June 30, 2022 (Successor), the Company had leases for office facilities in Marina del Rey, California; Bellevue, Washington; and Guelph, Canada.

In March 2021, the Company entered into an agreement for a sublease of office space facility in Marina Del Rey, California. The initial term of the sublease is in effect until November of 2025 with no renewal periods.

The components of lease expense were as follows:


	Successor		Successor		Predecessor
	Three Months Ended June 30, 2022		Period from January 27, 2022 through June 30, 2022		Period from January 1, 2022 through January 26, 2022
Operating lease cost	$	585	$	982	$	142

Variable lease costs for operating leases were immaterial for the periods presented above. Operating lease costs were included in Selling, general, and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. Supplemental information related to leases was as follows:


			Successor
			As of June 30, 2022
Weighted average remaining lease terms (in years):
Operating leases			7.2

Weighted average discount rate			5.3%

Maturities of lease liabilities by fiscal year for the Company's operating leases are as follows as of June 30, 2022 (Successor):


	Successor
	As of June 30, 2022
Operating leases:
Remainder of 2022	$	1,240
2023	2,525
2024	2,597
2025	2,252
2026	285
Thereafter	1,588
Total lease payments	$	10,487
Less: Imputed interest	(1,349)
Present value of operating lease liabilities	$	9,138

Rent expense was $571 and $1,062 for the three and six months ended June 30, 2021 (Predecessor), respectively, which was included in Selling, general, and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. As of December 31, 2021 (Predecessor), the expected future operating lease obligation are as follows:


	Predecessor
	As of December 31, 2021
Year ending
2022	$	1,957
2023	$	1,950
2024	$	1,950
2025	$	1,663