Operating Leases

9 Months Ended

Sep. 30, 2023

Operating Lease, Lease Income [Abstract]

7. Operating Leases.

The

Company has an operating lease agreement for its corporate office. The lease includes an option to extend the lease for up to 5 years and options to terminate the lease within 6 and 7.6 years. There are

obligations under finance leases.

The Company entered into an agreement in May 2020 that amended its lease for its office facilities. Under the amended lease, the Company’s leased space increased from approximately 7,800 square feet of space to approximately 10,700 square feet of space. The amended lease commenced in March 2021 when construction of the asset was completed and space became available for use. Consequently, the Company recorded the effects of the amended lease during the first quarter of 2021.

The components of lease expense were as follows (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease cost	$	108	$	108	$	323	$	324

Supplemental cash flow information related to lease was as follows (in thousands):


	For the Nine Months Ended September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$	379	$	368
Right-of-use assets obtained in exchange for lease obligations:
Operating lease	$	67	$	67

Supplemental balance sheet information related to lease was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating lease right-of-use assets	$	2,575	$	2,770

Other current liabilities	$	361	$	337
Operating lease liabilities, net of current portion		3,282		3,557

Total operating lease liabilities	$	3,643	$	3,894

As of September 30, 2023 and December 31, 2022, the weighted average remaining lease term was 7.6 years and 8.3 years, respectively. The weighted average discount rate used to determine the operating lease liabilities was 4.51% as of September 30, 2023 and December 31, 2022.

Remaining payments of lease liabilities as of September 30, 2023 were as follows (in thousands):


2023 (remaining three months)	$	127
2024		522
2025		537
2026		553
2027		570
Thereafter		2,027

Total lease payments		4,336
Less: imputed interest		(693	)

Total	$	3,643

Rent expense was approximately $0.1 million and $0.3 million for both the three and nine months ended September 30, 2023 and 2022, respectively.