Operating lease liabilities and their corresponding ROU assets are recorded at the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts was not readily determinable. As such, the Company used an incremental borrowing rate based on the information available at inception date. In the development of the discount rate, the Company considered its internal borrowing rate, treasury security rates, collateral, and credit risk specific to it, and its lease portfolio characteristics. As of December 31, 2022, the weighted- average discount rate of the Company’s operating and finance leases was 7.0% and 8.1%, respectively. As of December 31, 2021, the weighted- average discount rate of the Company’s operating and finance leases was 9.0% and 12%, respectively. The components of lease expense were as follows: Twelve Months Ended December 31, 2022 2021 (in ‘000s) Operatingleasecosts ................................. $2,230 $1,015 Finance lease costs: AmortizationofROUassets ....................... 1,442 195 Interestonleaseliabilities ......................... 830 13 Short-termleasecosts ................................ 199 405 Totalleasecosts ................................ $4,701 $1,628 Supplemental balance sheet information related to leases is as follows: As of December 31, 2022 2021 Assets Balance Sheet Location Operating lease right-of-use assets ..................... Operating lease right-of-use assets $10,881 $12,127 Finance lease right-of-use assets ..................... Property and equipment, net 27,392 822 Total lease assets . . . . . . . . . . $38,273 $12,949 Liabilities Current: Operating lease liabilities . . . Operating lease liabilities $ 1,455 $ 1,040 Finance lease liabilities . . . . . Finance lease liabilities 3,310 198 Noncurrent: Operating lease liabilities . . . Long term Operating lease liabilities 10,030 11,249 Finance lease liabilities . . . . . Long term Finance lease liabilities 24,099 154 Total lease liabilities . . . $38,894 $12,641 Twelve Months Ended December 31, 2022 2021 Supplemental Cash Flow Information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases . . . . . . . . . $ 1,743 $ 618 Operating cash flows from finance leases . . . . . . . . . . . $ 707 $ 13 Financing cash flows from finance leases . . . . . . . . . . . $ 999 $ 126 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets . . . . . . . . . . . . . $27,252 $12,422 67
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