Leases

9 Months Ended

Sep. 30, 2021

Operating Leases

During the second quarter of 2021, the Company amended its existing lease in Los Angeles, California. In accordance with Accounting Standards Codification (ASC) 842, the amended lease agreement is considered to be modified and subject to lease modification guidance. The right-of-use (ROU) asset and lease liability related to the agreement were remeasured based on the change in the lease conditions such as rent payment and lease terms. The fair value of the increase in related lease liability and ROU asset is estimated to be approximately $2.2 million. The amended lease now extends through March 31, 2027 and provides one option to extend for an additional five years.

As of September 30, 2021, the Company had ROU assets and corresponding operating lease liabilities of approximately $3.0 million and $3.3 million, respectively. For the three and nine months ended September 30, 2021 and 2020, the components of operating lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Operating leases
Operating lease expense	$	152	$	120	$	458	$	359
Variable lease expense	51		5		145		139
Operating lease expense	203		125		603		498
Short-term lease rent expense	63		63		188		191
Total expense	$	266	$	188	$	791	$	689


	At Sep 30, 2021
Weighted-average remaining lease term (years) operating leases	4.8
Weighted-average discount rate operating leases	6.4	%

Future minimum lease payments under operating leases as of September 30, 2021 are as follows:


Year	(In thousands)
2021 (Remainder)	$	110
2022	669
2023	817
2024	836
2025	808
2026	564
Thereafter	144
Total	3,948
Less present value discount	(625)
Present value of total operating lease liabilities	3,323
Less current portion	(447)
Long-term obligations under operating leases	$	2,876