Leases

3 Months Ended

Mar. 31, 2023

11. Leases

The Company has one operating lease for its office space which was amended effective March 1, 2022 for a term of 38 months with no residual value guarantees or material restrictive covenants. The amended lease provided for free rent for the first six and a half months of the lease and continues the security deposit of $6,000. In addition to base rental payments included in the contractual obligations table above, the Company is responsible for our pro-rata share of the operating expenses for the building. Our lease cost for the three-month periods ended March 31, 2023 and 2022 was approximately $13,000 for each period and is included in general and administrative expenses. As of March 31, 2023, the right to use lease asset consisted of $78,000 and is included in other assets. Also, at March 31, 2023, current lease liability of $42,000 is included in accrued expenses and long term lease liability was $55,000 and included in other liabilities.

Maturity of operating lease as of March 31, 2023 in thousands:

2023		38
2024		51
2025		18
Total		107
Less imputed interest		10
Present value of lease liability	$	97

The discount rate used in calculating the present value of the lease payments was 11%.