v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases
3. LEASES

The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):

As of:
June 30, 2023December 31, 2022
Operating leases:
Right-of-use asset, net$32,557 $30,859 
Short-term lease liability (recorded in accrued expenses)2,727 2,747 
Long-term lease liability27,720 27,635 
Total operating lease liabilities$30,447 $30,382 
Finance leases:
Right-of-use asset, net (recorded in intangible and other current assets, net)$824 $104 
Short-term lease liability (recorded in accrued expenses)746 16 
Long-term lease liability (recorded in non-current liabilities)63 71 
Total finance lease liabilities$809 $87 

Lease Cost

The components of lease cost are reflected in the table below (amounts in thousands):

Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Operating lease cost:
Amortization of right-of-use assets$693 $604 $1,375 $1,324 
Interest on lease liabilities633 632 1,247 1,277 
Capitalized lease cost— (244)— (487)
Finance lease cost:
Amortization of right-of-use assets5 1 10 3 
Short-term lease cost266 144 511 208 
Total lease cost$1,597 $1,137 $3,143 $2,325 

In accordance with the Service Agreements, prior to the launch of Phase 1 services in November 2022, the Company capitalized certain costs to fulfill this contract, including lease expense, as shown in the table above. These capitalized lease costs are amortized over the expected term of the related performance obligation.

Interest on finance lease liabilities was less than $0.1 million for the three and six months ended June 30, 2023 and 2022; accordingly, these amounts are not shown in the table above.
Weighted-Average Remaining Lease Term and Discount Rate

The following table discloses the weighted-average remaining lease term and discount rate for finance and operating leases.
As of:
June 30, 2023December 31, 2022
Weighted-average lease term
Finance leases0.6 years4.6 years
Operating Leases10.2 years10.1 years
Weighted-average discount rate
Finance leases8.7 %10.2 %
Operating leases8.6 %8.5 %

Supplemental Cash Flow Information

The below table discloses supplemental cash flow information for operating leases (in thousands):

Six Months Ended
June 30, 2023June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$2,988 $2,536 

Operating and financing cash flows from finance leases were each less than $0.1 million for each of the six months ended June 30, 2023 and 2022; accordingly, these cash flows are not shown in the table above.

Maturity Analysis

The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of June 30, 2023 (amounts in thousands):

Operating LeasesFinance Leases
2023 (remaining)$2,662 $748 
20245,187 23 
20255,215 23 
20265,262 23 
20275,141 15 
Thereafter22,082 — 
Total lease payments$45,549 $832 
Imputed interest(15,102)(23)
Discounted lease liability$30,447 $809 
Leases
3. LEASES

The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):

As of:
June 30, 2023December 31, 2022
Operating leases:
Right-of-use asset, net$32,557 $30,859 
Short-term lease liability (recorded in accrued expenses)2,727 2,747 
Long-term lease liability27,720 27,635 
Total operating lease liabilities$30,447 $30,382 
Finance leases:
Right-of-use asset, net (recorded in intangible and other current assets, net)$824 $104 
Short-term lease liability (recorded in accrued expenses)746 16 
Long-term lease liability (recorded in non-current liabilities)63 71 
Total finance lease liabilities$809 $87 

Lease Cost

The components of lease cost are reflected in the table below (amounts in thousands):

Three Months EndedSix Months Ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Operating lease cost:
Amortization of right-of-use assets$693 $604 $1,375 $1,324 
Interest on lease liabilities633 632 1,247 1,277 
Capitalized lease cost— (244)— (487)
Finance lease cost:
Amortization of right-of-use assets5 1 10 3 
Short-term lease cost266 144 511 208 
Total lease cost$1,597 $1,137 $3,143 $2,325 

In accordance with the Service Agreements, prior to the launch of Phase 1 services in November 2022, the Company capitalized certain costs to fulfill this contract, including lease expense, as shown in the table above. These capitalized lease costs are amortized over the expected term of the related performance obligation.

Interest on finance lease liabilities was less than $0.1 million for the three and six months ended June 30, 2023 and 2022; accordingly, these amounts are not shown in the table above.
Weighted-Average Remaining Lease Term and Discount Rate

The following table discloses the weighted-average remaining lease term and discount rate for finance and operating leases.
As of:
June 30, 2023December 31, 2022
Weighted-average lease term
Finance leases0.6 years4.6 years
Operating Leases10.2 years10.1 years
Weighted-average discount rate
Finance leases8.7 %10.2 %
Operating leases8.6 %8.5 %

Supplemental Cash Flow Information

The below table discloses supplemental cash flow information for operating leases (in thousands):

Six Months Ended
June 30, 2023June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$2,988 $2,536 

Operating and financing cash flows from finance leases were each less than $0.1 million for each of the six months ended June 30, 2023 and 2022; accordingly, these cash flows are not shown in the table above.

Maturity Analysis

The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of June 30, 2023 (amounts in thousands):

Operating LeasesFinance Leases
2023 (remaining)$2,662 $748 
20245,187 23 
20255,215 23 
20265,262 23 
20275,141 15 
Thereafter22,082 — 
Total lease payments$45,549 $832 
Imputed interest(15,102)(23)
Discounted lease liability$30,447 $809