9. Leases

6 Months Ended

Jun. 30, 2021

Leases

9. Leases

9. Leases

In March 2019, the Company entered into a nine-month office space rental agreement for two office spaces for its headquarters at 300 Park Avenue, New York, NY, which was subsequently extended for an additional twelve-month term. The rental agreement provided for a base rent of approximately $9,000 per month. In November 2020, the Company returned one of the office spaces and further extended this rental agreement for one of the office spaces for an additional twelve-months for a base rent of approximately $3,800 per month. In March 2021, the Company was notified that the counterparty’s right to occupy the space at 300 Park Avenue, New York, NY was terminating, and the Company was required to vacate by March 26, 2021. The Company vacated the premises and has advised the counterparty that it is in breach of this rental agreement and therefore, the Company has no further obligations thereunder.

In March 2021, the Company entered into an eighteen-month office space rental agreement for its headquarters at 300 Park Avenue, New York, NY, expiring July 2022. The rental agreement contains a base rent of approximately $4,000 per month. This agreement includes one or more renewal options. The lease agreement does not impose a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At June 30, 2021, the Company has right-of-use assets of $63,000 and a total lease liability for operating leases of $63,000, of which $12,000 is included in long-term lease liabilities and $51,000 is included in current lease liabilities.

At June 30, 2021, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in thousands):

		Operating
		Leases
Remaining Period Ended December 31, 2021	$	27
Year Ended December 31, 2022		40
Total		67
Less present value discount		(4)
Operating lease liabilities	$	63

In March 2021, the Company entered into a new operating lease, resulting in the Company recognizing an operating lease liability of approximately $74,000 based on the present value of the minimum rental payments. The Company also recognized corresponding ROU assets of approximately $74,000. As the Company’s lease does not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the transition date and commencement date in determining the present value of lease payments. Operating lease expense was $13,000 for each of the three and six months ended June 30, 2021. Amortization expense was $1,000 for each of the three and six months ended June 30, 2021.

The tables below present information regarding the Company's lease assets and liabilities (in thousands, except years and percentages):

		June 30, 2021
Assets:
Operating lease right-of-use-assets	$	63
Liabilities:
Current
Operating		51
Long-term
Operating		12
Operating lease liabilities	$	63
		June 30, 2021
Weighted-average remaining lease term – operating leases (in years)		1.3
Weighted-average discount rate – operating leases		8.0%

For the three and six months ended June 30, 2021, rent expense totaled approximately $8,000 and $25,000, respectively. For the three and six months ended June 30, 2020, rent expense totaled approximately $30,000 and $74,000, respectively.