LEASES

3 Months Ended

Mar. 31, 2020

Lessor

On May 29, 2019, we foreclosed on all of the membership interests of Hertz Broadway Tower, LLC, (“Hertz Broadway”), the owner of Broadway Tower. As a result, we acquired Broadway Tower, its related assets and business operations and assumed related liabilities, including 51 commercial office leases. The Company sold Broadway Tower inclusive of these commercial office leases in January 2020, which is more fully described in Note 5.

The following table presents minimum lease revenues and variable lease revenue for the three months ended March 31, 2020 and 2019 (in thousands).



	Three months ended March 31,
	2020		2019
Lease revenue
Fixed rent - Minimum lease revenue	$	203	$	—
Variable lease revenue	36		—
Total lease revenue	$	239	$	—

Variable rent includes costs reimbursed related to property operating expenses, common area maintenance, insurance and property taxes.

Lessee

We have operating leases for our corporate headquarters office space and certain office equipment. Our leases have remaining lease terms of between one to four years. The lease for our corporate office includes an option to extend the lease term for up to five years. This option is not included in the calculation of the right-of-use (“ROU”) assets and lease liabilities because the Company is not reasonably certain that it will exercise the option. Lease expense was $0.1 million for the three months ended March 31, 2020 and 2019, respectively, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. As disclosed in Note 14, JIA has sublet a portion of the Company’s office space. During the three months ended March 31, 2020, we recorded expense reimbursements from JIA for the sublease of office space and certain overhead charges of $33,000.

Variable lease payments are not included in the calculation of the ROU asset and lease liability due to uncertainty of the payment amount and were $0.1 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively.

Supplemental cash flow information related to leases for the three months ended March 31, 2020 (in thousands):



Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	80

Supplemental balance sheet information related to leases as of March 31, 2020, was as follows (thousands, except lease term and discount rate):



Operating leases
Operating lease ROU assets in other assets	$	637

Operating lease liabilities in accounts payable and other accrued expenses	$	724

Weighted average remaining lease term	3.0 years
Operating leases - Weighted average discount rate	7.1%

The following represents future payments on operating leases as of March 31, 2020 (in thousands):



Years ending	Amount
Remainder of 2020	$	237
2021	318
2022	239
Total lease payments	794
Less imputed interest	(70		)
Total	$	724

LEASES