v3.22.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
The Company discounts its lease payments using its incremental borrowing rate as of the commencement of the lease. The Company has determined a weighted-average discount rate of 7% as of June 30, 2022 and December 31, 2021.
The operating lease right-of-use asset and operating lease liability as of June 30, 2022 and December 31, 2021 are as follows:
June 30, 2022December 31, 2021
Operating lease right-of-use assets$6,431,000 $6,691,000 
Operating lease liability
Current1,757,0001,467,000
Non-current5,075,0005,288,000
Total operating lease liability$6,832,000 $6,755,000
For the three and six months ended June 30, 2022, the Company recorded $0.5 million and $1.0 million, respectively, in expense related to operating leases, including amortized tenant improvement allowances. For the three and six months ended June 30, 2021, the Company recorded $0.3 million and $0.5 million respectively, in expense related to operating leases, including amortized tenant improvement allowances.
The finance lease right-of-use asset and finance lease liability as of June 30, 2022 and December 31, 2021 are as follows:
June 30, 2022December 31, 2021
Finance lease right-of-use assets$3,810,000 $3,926,000 
Finance lease liability
Current292,000299,000
Non-current3,632,0003,642,000
Total finance lease liability$3,924,000 $3,941,000
For the three and six months ended June 30, 2022, the Company recorded $0.1 million and $0.3 million, respectively, in expense related to its finance lease. The Company did not hold a finance lease as of June 30, 2021.
The future minimum payments under non-cancellable operating and finance leases as of June 30, 2022, are as follows:
Operating LeasesFinance Lease
Remainder of 2022$1,036,000 $158,000 
20232,149,000 322,000 
20242,219,000 330,000 
20252,305,000 338,000 
2026232,000 347,000 
Thereafter— 5,949,000 
Total future lease payments7,941,000 7,444,000 
Less: imputed interest(1,109,000)(3,520,000)
Total lease liabilities$6,832,000 $3,924,000 
Litigation
From time to time, the Company may be subject to potential liabilities under various claims and legal actions that are pending or may be asserted. These matters arise in the ordinary course and conduct of the business. The Company regularly assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in the financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the Company’s assessment, it currently does not have any material loss exposure as it is not a defendant in any claims or legal actions.
Contingent Consideration
See Note 9 to our condensed consolidated financial statements for a discussion of the contingent consideration liability.