Note 8. Leases

The Company has an operating lease for office and manufacturing space which requires it to pay base rent and certain utilities. Monthly rent expense is recognized on a straight-line basis over the term of the lease which expires in 2027. At March 31, 2022, the remaining lease term was 5.75 years. The operating lease is included in the condensed balance sheets at the present value of the lease payments at a 7% discount rate which approximates the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment, as the lease does not provide an implicit rate. For each of the three months ended March 31, 2022 and 2021, operating lease expense and cash paid for leases was $0.1 million. Amortization of operating lease right-of-use assets was also $0.1 million for each of the three months ended March 31, 2022 and 2021. Variable costs were de minimis.

Maturities of operating lease liabilities as of March 31, 2022 (in thousands):