| Leases |
Note 12. Leases
As of June 30, 2023 and December 31, 2022, operating lease right of use assets were $21.2 million and $21.7 million, respectively, and operating lease liabilities were $21.9 million and $22.3 million, respectively.
The following table presents the components of the Company’s lease expense:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating lease cost |
|
$ |
951 |
|
$ |
803 |
|
$ |
1,855 |
|
$ |
1,425 |
Variable lease cost |
|
|
49 |
|
|
31 |
|
|
104 |
|
|
76 |
Operating lease expense |
|
|
1,000 |
|
|
834 |
|
$ |
1,959 |
|
$ |
1,501 |
The following table presents supplemental lease information:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating cash outflows for operating leases |
|
$ |
920 |
|
$ |
719 |
|
$ |
1,794 |
|
|
$ |
719 |
|
Right of use assets exchanged for new operating lease liabilities |
|
$ |
— |
|
$ |
— |
|
$ |
682 |
|
|
$ |
8,784 |
|
Weighted-average remaining lease term – operating leases |
|
|
7.9 |
|
|
9.3 |
|
|
7.9 |
|
|
|
9.3 |
|
Weighted-average discount rate – operating leases |
|
|
6.6 |
% |
|
6.5 |
% |
|
6.6 |
% |
|
|
6.5 |
% |
The following table represents our future minimum operating lease payments as of June 30, 2023:
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|
|
|
|
|
|
|
|
|
|
|
Ground lease |
|
Office and other leases |
|
Total |
Remainder of 2023 |
|
$ |
970 |
|
$ |
862 |
|
$ |
1,832 |
2024 |
|
|
1,998 |
|
|
1,701 |
|
|
3,699 |
2025 |
|
|
2,058 |
|
|
1,347 |
|
|
3,405 |
2026 |
|
|
2,119 |
|
|
1,273 |
|
|
3,392 |
2027 |
|
|
2,183 |
|
|
1,148 |
|
|
3,331 |
Thereafter |
|
|
9,618 |
|
|
3,227 |
|
|
12,845 |
Total undiscounted lease payments |
|
|
18,946 |
|
|
9,558 |
|
|
28,504 |
Less present value discount |
|
|
(5,719) |
|
|
(932) |
|
|
(6,651) |
Present value of lease liabilities |
|
$ |
13,227 |
|
$ |
8,626 |
|
$ |
21,853 |
In July 2023, the Company entered into a five-year office space lease, which will result in the recognition of approximately $0.6 million of operating lease right of use assets and operating lease liabilities in the third quarter of 2023.
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