|6 Months Ended|
Jun. 30, 2021
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):
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):
Maturity analysis under the lease agreement is as follows (in thousands):
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%.
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef