Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
The Company has operating leases for administrative offices in the United States (California), Canada, India, United Kingdom and Germany.

The Company terminated the lease in Ratingen, Germany during January 31, 2021. The Company entered into two new operating leases for its administrative offices in Ratingen, Germany, both from February 1, 2021 through January 1, 2023. The monthly lease rate is 2,510 EUR and 1,010 EUR per month.
The Company has no other operating or financing leases with terms greater than 12 months.
Right-of-use assets are summarized below (in thousands):
As of June 30, 2021
Palo Alto, CA Office $ 631 
Encino, CA Office 195 
Hyderabad, India Office 359 
Coquitlam, Canada Office 99 
Westminster, Canada Office 12 
Toronto, Canada Office 974 
Ratingen, Germany Office 94 
Berlin, Germany Office 564 
Slough, United Kingdom Office 36 
Less accumulated amortization (1,189)
Right-of-use asset, net $ 1,775 
Lease expense for operating leases recorded in the balance sheet is included in operating costs and expenses and is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. Operating lease expenses, inclusive of short-term and variable lease expenses, recognized in our consolidated statement of income for the three months ended June 30, 2021 was $0.3 million and $570,828 for the six months ended June 30, 2021.
During the three-month period ended June 30, 2021, the Company recorded $170,824 as rent expense to the right-of-use assets. During the six-month period ended June 30, 2021, the Company recorded $335,945 as rent expense to the right-of-use assets.
Lease liability is summarized below (in thousands):
As of June 30, 2021
Total lease liability $ 1,804 
Less: short term portion (602)
Long term portion $ 1,202 
Maturity analysis under the lease agreement is as follows (in thousands):
Year ending December 31, 2021 $ 347 
Year ending December 31, 2022 668 
Year ending December 31, 2023 375 
Year ending December 31, 2024 281 
Year ending December 31, 2025 265 
Year ending December 31, 2026 112 
Total $ 2,048 
Less: Present value discount (244)
Lease liability $ 1,804 
Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at the date of adoption of ASC 842, Leases ("ASC 842"). As of June 30, 2021, the weighted average remaining lease term is 3.74 and the weighted average discount rate used to determine the operating lease liabilities was 8.0%.